Are your savings safe? article discussion

JimmyTheWig

LongTermLurker wrote: »

Well the obvious advantage to the company is it only has one liability. They don't have to lodge a bond or anything, but in the event of another bank collapsing they only have to pay one share of the bail-out requirements, rather than several portions.

It wouldn't be fair for the government, or anyone, to force a company to contribute more than other companies just because it had bought someone out.

But surely they would pay based on their size? Combining them together shouldn't affect what they have to pay out...

LongTermLurker

JimmyTheWig wrote: »

But surely they would pay based on their size? Combining them together shouldn't affect what they have to pay out...

Don't know about that - makes sense, but I was always under the impression that wasn't the case, and only paid an equal share when called upon.

ukclarkkent

not sure where's best to ask this question so i'll try here first...

should i be worried about putting money INTO my ING(was KE) account this month? my isa's locked up with icesave, i didn't pull my money out of KE which got taken over by ING and after getting paid this week i can put some savings away like normal.

that money is sitting in my halifax high interest current account as i don't know what to do. i know ing's covered and i'm nowhere near the £50k mark anyway but i'm having trouble deciding what to do next. any thoughts/suggestions please?

thanks in advance, me.

JimmyTheWig

ukclarkkent wrote: »

that money is sitting in my halifax high interest current account as i don't know what to do. i know ing's covered and i'm nowhere near the £50k mark anyway but i'm having trouble deciding what to do next.

ING is covered by the Dutch scheme.
If you trust the Dutch government then your money is safe. If you don't then you'd be relying on the UK government going above and beyond what they need to to protect you.
You may feel safer in a bank with full UK protection.

sandspider2000

ukclarkkent wrote: »

should i be worried about putting money INTO my ING(was KE) account this month? my isa's locked up with icesave, i didn't pull my money out of KE which got taken over by ING and after getting paid this week i can put some savings away like normal.

I put a few thousand pounds back into my KE / ING account this morning. (Not as much as was there previously, it's much more spread out now). However, I see no harm in putting a bit back there - after all, UK banks can go bust too, and while waiting for compensation to come through, I will have other money available. Plus, the interest rate is still good - if it goes down, I'll take the money out again. You pays your money (literally!) and takes your choice...

Cheers,

Giles

I-LOV-MONEY

Is there any view about the Anglo Irish bank (who guarantee 100% refunds), and how we in the UK wouldl be affected if the worst happened ?

sandspider2000

I opened 2 accounts with Anglo Irish, but I never actually put any money in them. I know they're 100% guaranteed by the Irish Govt, but like the Icelandic Govt, the Irish surely won't have the money to actually bail out the savers, so the guarantee is a bit meaningless.

Bromley86

That might be the case, but there's a lot more of them - 4.5m vs 0.3m and GDP is 188b vs 12b.

sandspider2000

True. However, Ireland is in a recession so GDP is likely to fall. And as of October the 2nd, "Analyst Scott Rankin of Irish stockbroker Davy put the value of the guarantee for the six banks at up to 500 billion euros", so it was more than double Ireland's GDP then. I would imagine more money is in Irish banks now than there was then...

John_Pierpoint

I have two "executor" or "will trust" or "personal representative" accounts with building societies. (pick your preferred terminology)

I also have a personal account with these building societies.

Would I be right in thinking that if one of these institutions went bust, the first 50K would first be set against the trustee account and only if there was something left over would it be set against my personal savings?