Are your savings safe? article discussion

tucker2008

HELP

I have £50,000 and need to know which is the best savings ac around:beer:

designer0161

I have recently taken out an Offset Mortgage with C&G/Lloyds and currently my Offset Account has about 96k in it (the same balance of my mortgage so I am avoiding paying any interest). Martin (who is incidentally my hero - I could listen to him all day) would be proud of me!!

I need the money to cover large tax bills in July 2008 and 2009, but am happy that this way it is saving me more interest than it would be earning elsewhere. Obviously if I reduce the balance to 35k (to be protected by the FSCS) it will cost me money in interest but obviously I cannot afford to risk 60k+.

Am I right in thinking that if the unthinkable happened to C&G/Lloyds the money would be used to clear my mortgage balance? It would leave me with a huge problem in paying my income tax but at least I wouldn't lose any of my hard-earned savings?

Meltdown_2

designer0161 wrote: »

I have recently taken out an Offset Mortgage with C&G/Lloyds and currently my Offset Account has about 96k in it (the same balance of my mortgage so I am avoiding paying any interest).

Am I right in thinking that if the unthinkable happened to C&G/Lloyds the money would be used to clear my mortgage balance? It would leave me with a huge problem in paying my income tax but at least I wouldn't lose any of my hard-earned savings?

It seems someone from FSCS just confirmed this on BBC radio (Money Box).
Didn't hear it myself, so I'm off to the BBC website to check if it's there yet.
Yep.
http://news.bbc.co.uk/1/hi/programmes/moneybox/
It's only fair to give the link to the BBC, since they have a link to the MSE article - though what non-MSE'rs will make of Martin's buck-teeth ... :rotfl:

Patr100

tucker2008 wrote: »

HELP

I have £50,000 and need to know which is the best savings ac around:beer:

start here:
http://www.moneysavingexpert.com/banking/

Arthurian

[quote=CautiousPete;9485081]The crucial thing to convey to clients is that these financial limits apply to each financial institution, so that if the client's investments are spread between companies, then each of the investments with each firm is safeguarded to the levels below:

Allowance per individual: £48,000 per person:

Amount protected with each fund management group: 100% of the first £30,000 and 90% of the next £20,000

I hope this helps.
CautiousPete[/quote]

Whoa! What's with the £48,000 per person? Is this £48,000 just something particular to Skandia, or is it another piece of banking small print which affects us all?

Meltdown_2

Arthurian,
there are different compensation figures for deposits (i.e. savings) and investments.
The £48,000 relates to investments. The £35,000 relates to deposits.
There is further information on the FSCS website.

Arthurian

Phew! Thanks!

xiox

I pulled most of my money out of Iceland a few days ago. If I hadn't this article would have me worried...

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/23/cckrona123.xml

Now if B&B would actually transfer my ISA I would be happy (22 days later... still waiting).

WHATAGOAL1

jamesd, thanks very much for your clear and consise reply, after the holiday I am going to sort out this offset you explained

bristolleedsfan

Purely for curiosity, I have compiled the following list, showing the percentage of a Building Society's mortgage assets secured by retail share balance funds. Where the percentage is low, the society relies more on non-retail funding. Many smaller societies are over 100%, therefore appear to have spare funds, though it is some of those that have been pulling their mortgage deals (Earl Shilton, Melton Mowbray, Bath etc). This is because they have had a run on lending caused by other Societies pulling Morgage/Higher LTV deals.

The bracketed figure is the society's position according to total assets.

68% West Bromwich (8)
69% Britannia (2)
74% Derbyshire (9)
77% Nationwide (1)
78% Newcastle (12)
79% Skipton (6)
80% Cheshire (11)
81% Yorkshire (3)
82% National COuntes (21)
83% Norwich & Peterborough (13)
86% Chelsea (5)
86% Leeds (7)
87% Coventry (4)
88% Principality (10)
89% Nottingham (16)
89% Leek United (26)
89% Vernon (43)
90% Loughborough (40)
91% Stroud & Swindon (15)
91% Newbury (29)
92% Dunfermline (14)
94% Scarborough (17)
95% Tipton & Coseley (36)
96% Manchester (24)
98% Mansfied (38)
98% Teachers (39)
99% Furness (22)
99% Darlington (28)
100% Chesham (41)
101% Cumberland (20)
101% Bath (45)
102% Hinckley & Rugby (27)
102% Market Harborough (33)
103% Scottish (44)
104% Progressive (19)
106% Barnsley (34)
106% Dudley (42)
107% Ipswich (32)
108% Kent Reliance (18)
109% Saffron (25)
110% Chorley (46)
110% Beverley (51)
111% Shepshed (54)
112% Harpenden (49)
112% Century (59)
116% Monmouthshire (30)
116% City of Derry (58)
116% Marsden (35)
118% Melton Mowbray (31)
118% Stafford Railway (48)
119% Catholic (57)
120% Holmesdale (47)
120% Buckinghamshire (50)
122% Swansea (52)
123% Penrith (55)
123% Ecology (56)
126% Hanley (37)
128% Earl Shilton (53)
129% Cambridge (23)

Compiled from most up-to-date figures available at the time.