Are your savings safe? article discussion

ianmr65

timberman wrote: »

Newbie post
Please bear with this first post - just so that I fully understand your assertions in the Article, if I choose to use NR to carry all savings (of whatever size), and which would include ISAs, Instant Access Savings and Fixed Bonds - the Govt backed NR guarantee would ensure full 100% repayment, at any time, to anyone following this course of action?

Regards to all

Yes. While it remains in 'temporary public ownership' it's like NS&I, effectively a branch of the treasury, so cannot fail. - if and when it's sold all bets are off, so i'd be careful with the fixed rate bond options..i recon 2009, before its sold.

ianmr65

ianmr65 wrote: »

• Alister Darling's Statement that the crisis was worse than anything since 1930,
• The budget defecit
• Data from housingsnake,
• The growth in gazundering (opposite of gazumping)
• The buy to let fiasco
• the uk average loan to earnings ratio
• The collapse in the mortgages avilabale market.
• The halifax house price index index,
• The HBOS scare
• The B&B share price.
• The fact that the ecb told darling to get stuffed when he wanted mortgage securities, to be outright purchased, rather than just loaned against.
• And the fact that sitting outside the Euro, and the Dollar, the UK is in a worst position than anyone else with regard to central bank support -

It's all pointing to an almighty implosion, for UK PLC.

Hmm.. two months on it looks like the market has come up with a neat way to stop the dodgy uk banks collapsing.

Bank announces rights issue, to shore up woeful balance sheets
'Safe' banks eg RBS trade above right issue prices, and survive
'unsafe' banks trade down to well below right issue price, and get bought at knock down price by asset strippers and or larger banks. B & B, Hbos ect
Depositors are safe.
Mortgage holders are safe (as long as they keep up the payments. expect chain-gang, and summary executions to be called for by the new owners in the case of default)
Shareholders and staff get shafted.

JoanWitness

I seem to remember someone published a more broader list of what Bank owns what,but I am unable to find it.

Konfety

Are fixed rate bonds - yearly or two year etc - covered under the compensation scheme. (Put with a complying bank of course)

LongTermLurker

Konfety wrote: »

Are fixed rate bonds - yearly or two year etc - covered under the compensation scheme. (Put with a complying bank of course)

Yes, because it's a Fixed Term Deposit, not a Bond.

A deposit is a deposit, whether fixed or variable.

Konfety

Does that mean that when the bank uses the term say 'One year fixed rate bond' it is a deposit and covered under the scheme? (I think they mustbe using the term 'bond' to confuse simpletons like me:money: ) LOL

Is the Bank of Cyprus covered by the FSA £35,000 or is it in a passport scheme and some has to come from Cyprus then the balance from the FSA.

Thanks

Henwen

JoanWitness wrote: »

I seem to remember someone published a more broader list of what Bank owns what,but I am unable to find it.

The table showing which banks are in the same groups is in Martin's "Are your savings safe?" article here: http://www.moneysavingexpert.com/savings/safe-savings.

Hope that helps.

wylmaw

I posted this on the wrong part of the forum - perhaps people here could answer this question for me?
I want to invest a pretting large sum in shares later in the year (after the RBS much hyped equity crash!), currently I have a microscopic portfolio with the Share Centre, but like most on line share 'brokers' the shares are held in a nominee account. I want to know if things went Ts up and a share dealing centre went bust - do I own the shares and will I get paid out. Are they also subject to the 'your £35k is safe in our hands' banking security rule. I did email The Share Centre and ask this question but they did not reply - and that worries me.

jamesd

They just failed a customer service test and that's a more usual reason to use someone else.

The FSCS guarantee for investments of this sort is up to 48,000: 100% of the first 30,000 and 90% of the next 20,000. You should also retain dealing records to cover the extremely unlikely case that they lose all of their records of who the holdings belong to.

Former_MSE_Dan

Hey folks,

To keep you updated, i thought i'd let you know we've updated the final section of the article following yesterdays announcement by the chancellor

Are limits likely to be increased?

A. Yes. In July 08, in the sexily-titled document Financial Stability and Depositor Protection, the Chancellor announced plans to increase the limit from £35,000 per person per institution to £50,000. This is subject to further consultation but is likely to pass through parliament in Autumn 08.

Also in the consultation there was some talk that, rather than the current system, where the FSCS can call on funds when it needs them, the banks and insurers would need to pre-fund it. This hasn’t been totally ruled out but is now unlikely to happen.

Also importantly, the note we received from the Treasury explaining that if the FSCS didn’t have enough money, then the State would lend it the cash, is now likely to become law, due to this clause.

"5.51 The Government will therefore include provision in the forthcoming legislation to allow the National Loans Fund to lend to the FSCS. These loans will have to be repaid, with interest charged at appropriate market rates, out of future levies on the industry, as well as from the share of recoveries from the estate of the failed bank that accrue to the FSCS."