Are your savings safe? article discussion

primowino

How can you identify your full exposure to a bank. When you have some investments / cash ISAs the terms and conditions will tell you that your money will be placed in a client money account, but it does not tell you what bank it is with, also if you have a broker account or money for a house purchase or a retainer with a solicitor it will be placed in a client money account with a bank you are not told about.

So you could think you are safe but for example yo could have a £5,000 retainer with a solicitor which the solicitor has in Co-op bank, you may have £10,000 with a broker who holds it in a client money account at Co-op bank you could have a Smile ISA (money held in Co-op) with prior year accumulation totalling £25,000, savings with the CO-op of £20,000, trust accounts for 2 children of £1000 each in the Co-op. So you would think you had £23,000 with the Co-op, but you actually have £63,000.

The FSCS covers an entity going bust, so your claim if Co-op went bust should be £63,000, or the £50,000 limit, but you would never know until the solicitor or the broker said they would not honour your claim.

Tricky - or have I got it totally wrong?

I-LOV-MONEY

IceSave. Firstly I was relived when the Government said they were guaranteeing that nobody would lose out. I went to move some money on Tuesday morning, only to find that the brakes were on. I transferred some on Monday to my linked bank account, and so far it hasn't arrived :sad: It would normally be there by Wednesday.

On another point, is this guarantee "forever" ? When whatever happens, happens and I can have access to my money, do I have to move it out straightaway, or can I leave it there ? Is interest being paid on their 'Easy Access' (huh!), and ISA accounts at the moment ?

renard_2

I-LOV-MONEY wrote: »

IceSave. . . . I went to move some money on Tuesday morning, only to find that the brakes were on. I transferred some on Monday to my linked bank account, and so far it hasn't arrived :sad: It would normally be there by Wednesday.

Sorry, friend. You will undoubtedly find that it has "bounced back" into your Icesave account.
Such has been the experience of many, many people who asked for money to be transferred since about Thursday last week.
We thought our cash was being transferred, but the transfers haven't gone through. :mad:

Lugh_Chronain

ewokuk wrote: »

I have a question about ISA's in icesave. The government may well guarantee all deposits, so I will get the money back (eventually?), but what happens to the 2 years worth of ISAs I have in icesave? am I going to lose 2 years worth of tax free savings allowances which i can never get back? (which is going to add up to a lot several years down the line when all the tax free interest i would have got has been compounded).

According to HM Treasury arrangements are being put in place to ensure that all ISA customers of Icesave will continue to benefit from the tax-free status of their accounts.

Do bear in mind that nothing is 100% certain especially in these circumstances.

I-LOV-MONEY

renard wrote: »

Sorry, friend. You will undoubtedly find that it has "bounced back" into your Icesave account.
Such has been the experience of many, many people who asked for money to be transferred since about Thursday last week.
We thought our cash was being transferred, but the transfers haven't gone through. :mad:

Yes, just checked. It arrived back today :mad:

Anybody got any views on ICICI bank. Is it "safe" to leave £7k there ?

chris1

primowino wrote: »

How can you identify your full exposure to a bank. When you have some investments / cash ISAs the terms and conditions will tell you that your money will be placed in a client money account, but it does not tell you what bank it is with, also if you have a broker account or money for a house purchase or a retainer with a solicitor it will be placed in a client money account with a bank you are not told about.

So you could think you are safe but for example yo could have a £5,000 retainer with a solicitor which the solicitor has in Co-op bank, you may have £10,000 with a broker who holds it in a client money account at Co-op bank you could have a Smile ISA (money held in Co-op) with prior year accumulation totalling £25,000, savings with the CO-op of £20,000, trust accounts for 2 children of £1000 each in the Co-op. So you would think you had £23,000 with the Co-op, but you actually have £63,000.

The FSCS covers an entity going bust, so your claim if Co-op went bust should be £63,000, or the £50,000 limit, but you would never know until the solicitor or the broker said they would not honour your claim.

Tricky - or have I got it totally wrong?

You have to ask. For example, if asked Cofunds will reveal that they use RBS for uninvested cash inside stocks and shares ISAs and that this will form part of your £50K FSCS total for RBS.

Unfortunately not all will reveal the information - Hargreaves Lansdowne for example won't say, other than the specific fixed term cash bonds they sell for HBOS.

I-LOV-MONEY

chris1 wrote: »

Hargreaves Lansdowne for example won't say, other than the specific fixed term cash bonds they sell for HBOS.

I had a large sum of money invested with them. My financial adviser (there) was continually telling me to hold on, "we will come out of it", "it is a long term investment". Even though each day I could see the value of my stock dwindling. I hate to think how many thousands of pounds I have lost. In the end I just ask them to sell everything, and I can invest the cash in ........err Iceland :rolleyes:

moneysaver39

I can't see Sainburys bank on Martins list of linked institutions does anyone know if they are linked to another bank?
Am I correct that from the 50k guarantee they would deduct any money you owe the company? So if you had 20k savings with bank A and a mortage of 100k with bank A, you would not get your money back?
please help getting very confused!

nowa

cvd wrote: »

See here:

http://www.ft.com/cms/s/0/c3a11a74-9498-11dd-953e-000077b07658.html
Which just shows you what a bunch of liars they are.

The Irish "guarantee" is a way of getting gullible UK voters to put money in Irish banks so that if an Irish bank collapses, they will be able to fully recompense Irish voters with the deposits of UK voters. That is how democratic governments work.
The "fine tuning" mentioned in the article will perhaps be that the guarantee only holds for Irish voters.

I agree with your choice of NR and NS&I. Otherwise, if you are risk averse, you need to spread your savings just like people spread their investments. A piece of fundamental advice which seems to be sadly missing from many of the so-called experts on this forum.

Interesting as this is what I've been asking myself as well...

How "safe" is that 100% guarantee that the Irish government give you on your savings in Irish banks.

Lugh_Chronain

moneysaver39 wrote: »

I can't see Sainburys bank on Martins list of linked institutions does anyone know if they are linked to another bank?

Sainsbury's Bank plc is a joint venture with 50% of the share capital owned by J Sainsbury plc and 50% owned by the Bank of Scotland plc, a subsidiary of HBOS plc.

More info can be found here. Have a look at where it says ‘who regulates us?’ at the bottom of the page.

Sorry I can’t answer the rest of your query.