Are your savings safe? article discussion

Oblivion

Lokolo wrote: »

http://www.dailymail.co.uk/news/article-1063679/Brown-raises-bank-savings-guarantee-50-000-day-turmoil-markets.html

Yep, thanks Lokolo. As the article says
Gordon Brown will guarantee savings up to £50,000 when parliament reconvenes next week

Gordon Brown has confirmed that the government plans to raise the guarantee for bank savings to £50,000 from £35,000 in a new banking law.

It's too little too late, but I suppose it's better than nothing, assuming the other political parties vote it through, which now seems likely.

Dave.

Lokolo

Stavros wrote: »

The bit in red made me smile

Quote
Brown confirmed the increase would be included in banking reforms to be put to parliament soon

but its coming. lol after the recession

maypole

Baldur wrote: »

The proposed LTSB/HBOS deal has yet to be confirmed - see http://www.lloydstsb.com/lloydstsb_hbos_announcement.asp

Thank you for your reply. I have also just looked at the MSE homepage and found the answers to my query.

Patr100

The new Irish Govt guarantee seems a reassuring move but the "perceived level of risk" among some according to Channel Four news is that it makes Irish Banks more not less risky - as if such a drastic measure is trying to counter possible weaknesses elsewhere.

kjay_3

Hi
I have searched the forum and cannot find any reference to protection from the FSCA for investments through "Cofunds" or "Fidelity Funds Network"
I have many funds managed by both supermarkets,
Would the max level of compensation be £48k ?
If I have several funds with say "Invesco" within a supermarket,
What would be the criteria for compensation Would I be compensated:-
Per FUND, Per MANAGER or Total or Supermarket account ???
Thank you!

dunstonh

kjay wrote: »

Hi
I have searched the forum and cannot find any reference to protection from the FSCA for investments through "Cofunds" or "Fidelity Funds Network"
I have many funds managed by both supermarkets,
Would the max level of compensation be £48k ?
If I have several funds with say "Invesco" within a supermarket,
What would be the criteria for compensation Would I be compensated:-
Per FUND, Per MANAGER or Total or Supermarket account ???
Thank you!

You have nothing to worry about. Whilst Cofunds and Fidelity have FSCS protection themselves your funds are ring fenced and if they go under you appoint a new adminstrator.

ianmr65

Patr100 wrote: »

The new Irish Govt guarantee seems a reassuring move but the "perceived level of risk" among some according to Channel Four news is that it makes Irish Banks more not less risky - as if such a drastic measure is trying to counter possible weaknesses elsewhere.

The "perceived level of risk" they used was that CDS on the Irish Gov debt has just widened to 60 points from 30. That means it costs you £6000 to insure against a £1,000,000 loan by the irish goverment being defaulted!! This implies that the CDS market thinks, it's now twice as likey that Ireland, part of the ECB, may go bankrupt- All of it - than yesterday.

This is of course what is technically known as B@llocks - not even the loonies who trade the CDS markets believe that ireland will go bankrupt

The fact is that soverign debt CDS notes are traded, long and short, and the difference between countries spreads are arbitraged. You can even trade USA CDS notes!!! Someone should sit fisal, and jon snow down and explain these things to them.

Now as to how safe the Irish banks are, being as they have no central bank controlled from ireland, is another question.

IFLY

Hi There

Can anyone tell me, I have looked hard to see if there is an answer.

I have mortgage with RBS which is an Offset mortgage, and I have savings well over the £ 35,000 or even £ 50,000 limit which is linked to the mortgage account via the offset.

Given:-
"Any debts with the same institution are subtracted from your savings
A piece of minutiae in the Financial Services Compensation Scheme rules dictates that if you have debts, such as a mortgage, loan or credit card with a bank that you also have savings with, any outstanding debts will be subtracted from the savings. For example if you have £20,000 in savings and a £15,000 loan, in the unlikely event that bank went bust you'll only get £5,000 compensation. "

Ther are offsetting by doing this.

Does the same apply if the situatuation is reversed!!?

Thanks

Ian

kaydeed

Can anyone offer any advice. I have seen a lot about personal savers getting back £ 35,000.00 of their money in the unlikely event that a bank crashes. if you have a small buisness with all your money in one of the leading banks. Does the £ 35,000.00 apply to a small buisness account

patgalias

MSE_Dan wrote: »

This discussion relates to the fully updated

Are your savings safe? article

My daughter had a serious accident and put the compensation money she received into savings accounts with Abbey and Alliance and Leicester which have both been taken over by Santander. If I read your article correctly, I understand she should be covered separately for both, but she has recently gone to work in France, but has at the moment left her money in English savings accounts. Would she still be covered by the UK government's guarantee?