Are your savings safe? article discussion

BACKFRMTHEEDGE

I know everyone will probably think I'm wrong but I moved my small amount of savings out of the halifax today. I don't have much savings so I need to have access to it.

dbrooksvet

Hi,

I have money in an ingdirect account. With all the concern of financial collapse would it make sense to move it to my hsbc account for extra security?

oldsport

I've got a £25K bond with Halifax which I can't withdraw until next August

I was aware of the FSCS when I opened it and so wasn't worried

There are now some postings on the web saying that if a big bank goes under the FCSC couldn't cope and this is really scaring me

The updated MSE article has a quote from Yvette Cooper saying the the government would guarantee even a big bank.

The Treasury gave us the following statement

"In the unlikely event a major bank became insolvent the Government would ensure that the FSCS has access to enough immediate funding to pay out depositors in a timely manner, through borrowing from the Government or Bank of England. The FSCS could then levy up to £4 billion per year from the financial services industry to cover the costs of compensation"</EM>
This seems to remove doubt but I'd still be grateful for views on whether they would cover Halifax if it goes bust

sabretoothtigger

If it was a large amount of cash (ie. a big bank total loss) it would produce a greater delay but you'd get it eventually is my understanding

Former_MSE_Dan

Hey folks,

Just to address a point that has been raised on here a few times today (during lots of good discussion :-)) - whether the FSCS is big enough to cope. The latest info we have is that which oldsport has quoted

"In the unlikely event a major bank became insolvent the Government would ensure that the FSCS has access to enough immediate funding to pay out depositors in a timely manner, through borrowing from the Government or Bank of England. The FSCS could then levy up to £4 billion per year from the financial services industry to cover the costs of compensation"

We were given this answer after we asked a lot of questions about what would happen if the required FSCS payout exceeded their yearly pot of £4billion.

The previous statement we had from the FSA was that, in the even of a big bank collapse, it would then work with the Treasury and Bank of England to find a solution, so in least in terms of clarity, the statement from HM Treasury is a bit more reassuring!

Hope this helps

Dan

oldsport

Thanks, Dan

Have you still got the original letter from the Treasury:question:

Mr_Friendly

Hey folks I have a question.
My wife runs a small business and has a small amount of savings in her business account (in a UK bank). The account has less than £10k in the bank.

Does anyone know if this is covered under the FSCS rules given that it is a business account and not a personal savings account?

Luis-FlightManWithAPlan

BACKFRMTHEEDGE wrote: »

I know everyone will probably think I'm wrong but I moved my small amount of savings out of the halifax today. I don't have much savings so I need to have access to it.

I agree with you there.The amounts of £35,000 flying about are way above my head but would usually suggest the people with that amount of money would be able to wait up to 6 months if a bank did go bust (in general im not saying everyone) but people with less money might be a bit more cautious as it could be needed faster!

hank16

Hi i need some reassurance.I have saving of over £35k and am in the process of splitting them up now.Some i have with Anglo Irish and am thinking of fixed rate bond with icici bank.I've filled the online application form out alls left to do is write a cheque and post it to an address in Wembley!!?? This feels wrong.Has anyone else here invested with icici and are they ok/safe/stable.Their interest rates are good-thats what i went for .As you may tell i have little experience in investment!
Thanks in advance

bunnydrumming

Ok..... i sold my house earlier this year (and am obviously not looking to buy a new one right now!)

I put most of the money into various savings accounts in Barclays - mainly because i live out in the sticks and this is the only bank close to me - i have around £120,000 altogether. I will obviously move some of this money around this weekend into different banks

However i also put some of the money into investments all though Halifax - Through the Halifax i have
a cash ISA which i put into each month through direct debit (around £5000)
around £200,000 in medium risk investments - which if i move i will lost any interest
a savings account of around £30,000

so my questions if anything happened to the Halifax what would be safe and what would not be.
:eek: Surely my investment money would be safe as its invested in various companies or would i lose this if halifax went bust - would this be my 35,000
:eek: Would my cash isa be safe or would that be included in the 34,000
:eek: would my savings account be unaffected as it is below the 35,000 or would the other monies with the halifax affect this.

I will make appt to see halifax but wanted to find out from you guys first

Any advice welcome - it took me a long time to build up my savings and was a long hard struggle and i am planning to buy a house eventually and don't want to risk that