Are your savings safe? article discussion



  • Builder_Bob
    Builder_Bob Forumite Posts: 1 Newbie
    Is the first £35,000 protected in Building Society savings accounts?
  • daz9643
    daz9643 Forumite Posts: 73
    Part of the Furniture 10 Posts Combo Breaker
    One big potential problem is with 'one accounts'. I have a large amount of money offsetting my mortgage, if i withdraw the money and put it somewhere else it defeats the point of the product. I suppose the thing to do would be to just use the money to pay a lump sum off the mortgage but then i don't have the money handy if i need it.
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  • Bernard_Coleslaw
    Bernard_Coleslaw Forumite Posts: 648
    Part of the Furniture 500 Posts Combo Breaker
    Is the first £35,000 protected in Building Society savings accounts?

    The answer to your question is yes. Please read through the thread, this was asked (and answered) earlier.
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  • debbie42
    debbie42 Forumite Posts: 2,586 Forumite
    daz9643 wrote: »
    One big potential problem is with 'one accounts'. I have a large amount of money offsetting my mortgage

    If it's like my current account mortgage, then it's effectively a large overdraft facility. Unless you've paid it off you are still in net debit, so I'm not worried about that one. It depends how your provider manage it though, maybe?
  • willum
    willum Forumite Posts: 9 Forumite
    Not Strictly 'Savings' but - will pension annuities which are currently being paid, be affected by the current situation?
  • Hairless_Biker
    Hairless_Biker Forumite Posts: 1 Newbie
    If I have savings in an Linked offset Mortgage account with a UK building Society which exeed £35,000 is this money at risk should the building society go Bust. How would this effect the outstanding Mortgage. ?
  • nilrem_2
    nilrem_2 Forumite Posts: 2,188
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Why really did the government bail out Northern Rock?

    If NR had been allowed to go bust and people had lost their savings; the following day every single bank and building society in the land would have been inundated with massive queues of savers demanding their cash out, this would result in total meltdown in the whole financial system and possibly a breakdown of law and order too.
    IMHO they had no choice but to act. :)
  • harmonic1969
    harmonic1969 Forumite Posts: 1 Newbie
    The fact that the FSA have capped the amount (from April 1st 2008) they can tap the financial industry for, if something goes wrong, at £4 billion, is a travesty and a mockery. This is a derisory amount next to the potential amount required if one or more banks went under. The guarantee of your £35k is no more than an illusion.
  • sarahbell
    sarahbell Forumite Posts: 1 Newbie
    Is the same true for business accounts?
  • Former_MSE_Dan
    Former_MSE_Dan Former MSE Posts: 1,595
    1,000 Posts Combo Breaker
    sarahbell wrote: »
    Is the same true for business accounts?

    Yep, as long as the annual turnover is less than £1,000,000
    Former MSE team member
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