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FSCS - Lloyds Bank and Halifax Bank Linked
I regularly review my savings accounts. As I have noticed some recent bank takeovers, the Financial Services Compensation Scheme (FSCS) is of particular interest.
The FSCS is now £120,000 per person, per financial institution, so I was keen to establish which banks are linked and particularly which banks share a single FSCS licence. I used MSE's 'Which banks are linked?' feature at:
Initially I checked Lloyds Bank and Halifax Bank. Here are the results I received:
- Lloyds:
These banks/building societies all share one lot of £120,000 protection
Cheltenham & Gloucester
Lloyds
Scottish Widows Bank
This means, if you have accounts with more than one of these, you should check how much it is and be aware of how much is protected.
- Halifax:
These banks/building societies all share one lot of £120,000 protection
AA (pre Oct 2015)
Bank of Scotland
Birmingham Midshires
Halifax
Intelligent Finance
Saga (pre Oct 2019)
St James Place Bank
This means, if you have accounts with more than one of these, you should check how much it is and be aware of how much is protected.
I was certain that Lloyds Bank and Halifax Bank were linked, but the MSE results do not show this. In fact the MSE results indicate that Lloyds and Halifax each have their own individual FSCS licence, shared only as shown in the MSE results.
AI Search Assist begs to differ:
Lloyds Bank and Halifax Bank share the same Financial Services Compensation Scheme (FSCS) protection limit of £120,000, as they are part of the same banking group. This means that the total protection applies to the banking licence as a whole, not per brand.
My conclusion is that combined savings with Lloyds Bank and Halifax Bank would only be protected up to a total of £120,000, and not £120,000 per bank as the MSE results suggest..
Am I missing something here - why do the MSE results not show Lloyds and Halifax as linked?
Razoo
Comments
-
”Halifax” may cease to exist soon apparently
0 -
There is, at least currently, some division between them as you can do balance transfers from Halifax to Lloyds which is normally blocked for groups like RBS to NatWest
If Lloyds are getting rid of the brand in all but name it may soon be moot
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
1 -
Am I missing something here
Yes, don't rely on AI for accurate answers. Check with the bank's own website.
16 -
I'd be minded to trust the FSCS website to give the correct information rather than Google in AI mode or my own certainty.
Lloyds Bank and Halifax operate under different banking licences so do not share their protection.
6 -
Halifax is a trading name/division of Bank of Scotland plc. Lloyds Banking Group owns Lloyds Bank and Bank of Scotland but they each have their own banking licences and thus separate FSCS protection.
From the foot of Halifax's website: "Halifax is a division of Bank of Scotland plc."
3 -
This. AI can provide you with wonderfully plausible and confident sounding answers that are nonetheless wrong.
3 -
Agreed, AI can be useful bit always check information against the original source, especially if it involves the safety of your money.
1 -
Has 'Halifax Bank' ever even existed?
0 -
That's nothing to do with it's status - it's a entirely a business decision - the relationship between Halifax/BOS and Lloyds is virtually identical to that between RBS and NatWest.
0 -
Halifax plc existed between conversion from a building society and its takeover by Bank of Scotland. It was an independent registered bank, although the word "Bank" wasn't in its name.
3
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