Are your savings safe? article discussion

dunstonh

I've taken that approach ever since getting caught with a large lump of my ex-company pension in Equitable Life in 2000...

pension protection is 100% of first £2000 and 90% of rest with no upper limit. So, there is no need to spread pensions around unless you want lots of pots of £2000.

GustyGardenGalaxy

chris1 wrote: »

Also, if the worst was to happen, it would probably be some time before you would be reimbursed by the FSCS.

I thought that usually took place within a week of the reimbursement application being made by the customer?

YorkshireBoy

GustyGardenGalaxy wrote: »

I thought that usually took place within a week of the reimbursement application being made by the customer?

The FSCS site says (within) 6 months, but I think there's some EU legislation that quotes a figure of 3 months.

dunstonh

I thought that usually took place within a week of the reimbursement application being made by the customer?

It has never been called upon so who knows? The only time the FSCS has had to pay out to date is for endowment mis-sales from defunct companies and they typically take two years.

GustyGardenGalaxy

dunstonh wrote: »

It has never been called upon so who knows? The only time the FSCS has had to pay out to date is for endowment mis-sales from defunct companies and they typically take two years.

I see, thanks. Let's hope that they never have to test it!

GeorgeHowell

Lloyds TSB/HBOS will be daft if they go for combined FSCS registration, because most people with more than £35000 in the combined bank will place some of it elsewhere in order to remove any risk.

Doesn't mean to say they won't do it that way though -- being daft is obviously a major feature of many bankers' behaviour these days. But at least the relatively conservative and sensible lloyds TSB will be in the driver's seat.

LongTermLurker

YorkshireBoy wrote: »

The FSCS site says (within) 6 months, but I think there's some EU legislation that quotes a figure of 3 months.

I read about that legislation yesterday as well (just a one liner, so don't know if it's true)

chris1

GeorgeHowell wrote: »

Lloyds TSB/HBOS will be daft if they go for combined FSCS registration, because most people with more than £35000 in the combined bank will place some of it elsewhere in order to remove any risk.

What's the betting they keep separate registrations to start with then later (when no-one's paying attention) combine them...:rolleyes:

c0113tt3

With regard to Lloyds Tsb and savings.

How safe would savings be?

I have noticed their stock / shares have halved in the last year, which is in line with the rest of the main banks and the worst affected bank shares have gone down to a quarter of what they were. They have a 142 % loan / deposit ratio, and HBOS has 177%. Lloyds debt rating has also been downgraded too, which means that other banks are less likely than before to lend to them. Criticism of the merger with HBOS say its risky of Lloyds with such turbulent times as Lloyds has tripled its exposure to uk mortgages

As for the money been guaranteed by fscs, I have no faith in that system what so ever, considering they do not have the money to pay out if a big bank should go down, and the government does not have the money either. As for the FSCS, judging by the past and articles in this forum, they were only ever to cover small financial institutions, and there are at least 2 smaller banks that are reported in the past that went bust, and the fscs still hasnt even paid those out, more than a decade later !! An american organistaion with a similar role to the fscs, couldnt cope either should some of their banks go down (which is expected), and report that it would take up to 99 years, to pay back savings, hence the us government with a financial rescue plan that is in the current news

My feeling is to watch share prices of Lloyds tsb, and if they start dropping to say less than £2 to £1.50, then its time to bail out. Yes watching shares isnt an ideal way to judge, but is usually a sign.

What do you think?

roddydogs

Totally agree with the above post, why do posters keep parroting the "£35,000" rule as if its cast in stone? Where precisely would the Fscs, or the government get all these Squillions of pounds to pay out if several Banks went belly up? Discuss.

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