Are your savings safe? article discussion

jack_spratt_2

But, just as like it did with Icesave, Dunfermline, Bradford & Bingley, and doubtless others in the future, the government will pick up the tab for anything over £50k.

Although the government has indicated that it will not let a Bank fall we can only presume this !! nothing is written in legislation

Things that were unthinkable 3 years ago are now not !! and who knows if in 3 years time things that are unthinkable now will not be in 3 years .
But must add I would not hesitate to use Northern rock but would still limit my saving within the compensation guide lines

scott_lithgows

tsmlion wrote: »

Has just been announced.....4pm.......Govt is to split NR in two.

Watch this space....................

Wonder who will buy the savings part,my money,s on Santander.

MarkyMarkD

That's a piece of non-news, if I ever heard of one.

This has been on the cards for months, so I'm not sure what scoop Sky News claim to have.

DRAWDOWN_OPPOSER

the eu are deciding whether or not to allow the government to re organise northern rock.and allow them to sell off part of this to a "good bank" ??? which would take care of savers money.as i have more than £50000 with northern rock in fixed term bonds because the government guaranteed all savings regardless of the amount, what happens now it looks as though they may move the goalposts?.will i be penalised for reducing the fixed term bond to £50000 before its maturity date ,if the new bank falls under the old rules of £50000 maximum and i have to once again go through the procedure of spreading my savings about .this point was mentioned in the how safe is your money column and nortern rock was supposedely fully guaranteed but with a watch this space warning about a possible change of ownership.

jack_spratt_2

I enquired in our local branch of Northern rock and was told that all money deposited before the savings part of the business is sold would be covered in full by the Government and any savings after this time when sold would be covered as any other financial institution is .
But must add that I was told this by word of mouth and I have never seen it wrote down in black and white !!This confirms what other posters have said

DRAWDOWN_OPPOSER

Thank you Jack . Prior to asking my question I had not had time to read the other comments but now having searched through them realise that everyone is just guessing on the guarantee.Nothing is certain and lets face it if the government decided to freeze all savings,apart from rioting what else could you do.No doubt all MP,s would get prior warning of this to move their funds offshore.The above may sound ridiculous but the situation we are now in would have been ridiculed had it been suggested three years ago.

Sceptic001

jack_spratt wrote: »

I enquired in our local branch of Northern rock and was told that all money deposited before the savings part of the business is sold would be covered in full by the Government and any savings after this time when sold would be covered as any other financial institution is .
But must add that I was told this by word of mouth and I have never seen it wrote down in black and white !!This confirms what other posters have said

You are right to be sceptical.

A verbal guarantee is not worth the paper it is written on!

murphydavid

I just heard a financial know it all on the radio speculating that the hardest hit countries in the Euro zone could be abandoned by the wealthier ones and be left with no option but to collapse or revert back to their previous currency.

Does this lead on to: At which point they might become as healthy as Iceland.

Ireland and Spain are two of these. Now we all remember that Kaupthing was a UK bank but…. And we all know a couple of UK banks that are really Irish or Spanish… Hello FSCS…UK tax payers are so generous you know.

bendipa

murphydavid wrote: »

I just heard a financial know it all on the radio speculating that the hardest hit countries in the Euro zone could be abandoned by the wealthier ones and be left with no option but to collapse or revert back to their previous currency.

Does this lead on to: At which point they might become as healthy as Iceland.

Ireland and Spain are two of these. Now we all remember that Kaupthing was a UK bank but…. And we all know a couple of UK banks that are really Irish or Spanish… Hello FSCS…UK tax payers are so generous you know.

It's unlikely that Eurozone countries under pressure like Greece, Spain will be abandoned by other member states. That would mean a complete breakdown and distrust of the Eurozone as an entity with a likely crash of the Euro.If the suspect countries then exit the Eurozone, its whole raison d'etre would have been severely compromised. That is still possible, but the ECB and EU will do everything in their power to prevent that scenario from happening, otherwise the EU will be pretty well finished as an entity as the requirement is to get all non-eurozone members like the UK to join up. That will hardly be likely if the eurozone disintegrates. Ireland is looking a little more optimistic as at last it seems to be tackling its debt problems given its very harsh budget measures last December, but a lot depends on whether the unions will co-operate over this.

Who really knows what will happen in the months ahead. The media as usual are whipping up hysteria, but they have little more idea than you or me.

Bill_Payer_4

Is Investec safe up to £50k? They emailed me to that effect (covered by FSCS), but are they not South African? Incidentally, why is their High 5 Account (weekly average of top 5 instant access accounts per Moneyfacts) not given 'best buy' on a long-term basis?