Are your savings safe? article discussion

oldsport

hank16 wrote: »

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

I'd stick with a solid UK institution like Nationwide or HSBC

The process of getting your money back if a foreign bank goes bust is more complicated and there are unanswered questiosn about whoich situatiosn yuo would be fully covered

competitionscafe

Some gloomy views here:

Credit Crisis: Just how bad can it get?
Have we reached a turning point in the credit crisis with the bankruptcy of Lehman or is this just the start of worst times to come? Sean Farrell, Sean O'Grady and Stephen Foley ask the experts:
Wednesday, 17 September 2008
http://www.independent.co.uk/news/business/analysis-and-features/credit-crisis-just-how-bad-can-it-get-933057.html

trenchwars

"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"

If the FSA were able to borrow money at, say 5% interest, then any more than 80 billion and the 4 billion levy wouldn't cover the annual interest on the loan. So what happens if they have to borrow more than that to compensate depositors ...

oldsport

trenchwars wrote: »

If the FSA were able to borrow money at, say 5% interest, then any more than 80 billion and the 4 billion levy wouldn't cover the annual interest on the loan. So what happens if they have to borrow more than that to compensate depositors ...

increase the levy - or account for it in a different way

tommyx_2

I have Intelligent Finance(HBOS) offseting account with approx £65k mortgage/loan and £90k savings/current account.
Today i will take the surplus £25k to another institution when i have done my research but am i right in thinking that longterm the £££££ are safe so should keep the advantages of offestting all th einterest and hence overpaying, or should i lump sum, which i dont really want to do. With current over payments i should pay off repayment part of my mortgage in the next four years, so dont want to remortgage to get better rate, leaving about 30k interest only backed by a endowment - but offsetting and hence overpaying this one too.
Are we any more protected if we have borrowings and savings with one establishment?
THanks for any comments you may have
Cheers
Tom

Heinz

I have to admit I haven't waded through the 16 pages of this thread and am just going to pose my question.

I understand that if I (alone) have £35k in (say) a SAGA savings account, I'm fully covered by the FSA guarantee and/or Alistair Darling.

What would be the case though if I and the GL also had another £35k in a joint A/C with SAGA? Would that be fully covered? Or would only half (the GL's half) of it be covered? Or would none of it be covered?

stilernin

Hi, I am not sure if this is the right thread for this, but in the light of what is happening to the banks I welcome your views...............

I am on the verge of exchanging on a house for which I'll be paying cash and was hoping for a few weeks before completion to get a few more quid in interest.

At the moment I have £50k in A&L Plus Saver, £100k in Online Saver and £20K in my current account ready pay deposit. In the next few weeks I would need to gather in a further £12 from some ISAs.

What would you all do?

Heinz

You have £170k or more in ONE organisation? Good grief. To be sure I'm covered by the FSA guarantee, I have no more than £33k in any organisation (using Martin's colour-coded table [scroll down] to check which is part of which)

stilernin

I know......... !! With out thinking it through, I was collecting it all together for the purchase, but now I'm really concentrating I realise that I could transfer the total amount to the solicitor from different accounts........ doh!

Am I safe for a couple of weeks do you all think or should I start moving it all around? Should I give it to the solicitor now? Did I hear that they pay interest on the money they hold?

Heinz

stilernin wrote: »

Should I give it to the solicitor now? Did I hear that they pay interest on the money they hold?

Yes, they certainly do on the funds from estates (inheritance) so I expect that is the case.

Make a call to your solicitor.