Are your savings safe? article discussion

RajaStyle

Updated yesterday 18/9/08

http://img.thisismoney.co.uk/i/pix/2008/08/BanksGraphicDM_600x273.jpg

http://www.thisismoney.co.uk/bank-owners

quaywegirl

I just called my bank and tried to open a bank account for my 5 month old son. I was told that an account could be open, but it would be held in my name and he would be listed as the beneficiary and the account would then be transferred to him when he turns 8.

My question is, would the money in the account be protected under my sons allowance of £35k or would it be included under mine?

Additionally, if the bank went under, would this be used to pay off my mortgage held with the same bank?

SussexDon1

Does the Govt scheme cover my business accounts?
They are in the name of XXXXX Limited and I own the company and am a sole Director. If you answer yes I will move in excess of £35k to other banks if its not covered theres no point moving but is there any thing else I can do. The Business is nto doing so well at this time but I have built up a "pot" so can live off this until the cycle swings back upwards.
Regards
SussexDon1

dunstonh

Does the Govt scheme cover my business accounts?

There is no Govt scheme.

They are in the name of XXXXX Limited and I own the company and am a sole Director.

The FSCS deposits protection scheme does not cover you. You are a limited liability company and in the same way creditors to your company have no protection from you failing, you have no protection from banks failing.

Sole traders and partnerships do qualify under the deposit protection scheme.

SussexDon1

dunstonh
thanks for the quick response, is there anything I can do then with my business deposits totalling £100k. If I move them into my name I will have to pay tax so thats not ideal.
thanks and regards
SussexDon1

dunstonh

If I move them into my name I will have to pay tax so thats not ideal.

Plus your accountant would go ape as it could be viewed as a withdrawal of capital from the company.

is there anything I can do then with my business deposits totalling £100k.

If you really are paranoid enough to let it worry you then stick with the big guns. Lloyds, HSBC, Barclays and Abbey.

Lokolo

Or Northern Rock as the governemtn own them now!

competitionscafe

BBC Radio 4's Money Box on Saturday 20 September at 1200 or listen again at: http://bbc.co.uk/moneybox

** In the UK the big news this week is that Lloyds TSB is taking over Halifax Bank of Scotland (HBOS). It will create a mega-bank, bigger than any of its High Street rivals. Normally such a deal would be blocked by the competition authorities – as they did when Lloyds TSB wanted to take over Abbey in 2001. So why has this deal been allowed? What does it mean for customers of the two banks? Will shareholders get a say in the deal? And what effect will it have on the mortgages and savings of everyone else?

** If a UK bank did fail how safe is your money? Many listeners have emailed us asking how the rule which guarantees the first £35,000 actually works. Joint accounts, several accounts in one bank, several accounts in different banks, savings and mortgage with the same bank. And so on. We elucidate.

LongTermLurker

jingle68 wrote: »

Hi, i have savings in the following banks, can anyone tell me if they are all under the UK £35000 FSCS protection and if they are all classed as seperate institutions?

Kaupthing Edge - YES, NO LINKS
Birmingham Midshires - YES, PART OF HBOS
ICICI bank UK - YES
Britannia Building Society - YES (don't know if there are links)
Halifax (childrens savings account of which i am trustee) - YES, SAME INSTITUTION AS BM
Alliance & Leicester - YES

thank you for any help

Jingle68

see above.

wilkopn

Are you sure that Northern Rock really is safe?
Here is what Northern Rock display on their website.
I can't find any mention in their terms and conditions that the government guarantees 100% of new savings.

Depositors

On 1 October 2007 the Financial Services Authority (FSA) increased the limit of Financial Service Compensation Scheme (FSCS) cover for deposits to 100% of the first £35,000 of each depositor's claim. Most depositors, including individuals and small firms are covered. The Scheme limit relates to each depositor for their combined deposits held with Northern Rock and not for each Account. Further details of the Scheme are available on request.