Stay or move from the Bradford+Bingley?

johnbfan

HI there

I take it some of you on this thread actually have savings with B&B. I do - I am in two minds about what to do - I took some out of an ISA (loosing interest) but have done nothing with it. Might have to buy a new boiler so needed to know I could get at it easy. Not sure if I want to take the rest of my savings out. Its taken me many years to get the bit I have (well below the £35,000 limit) so in that respect I have no worries. As said, if everying starts taking money out it will make things. Although the news doesn't look brilliant - I wonder if there is so much to worry about - is it more scaremongering causing things to look worse than they are.

isofa

Unless you absolutely have to, I wouldn't take money out of your ISA, but instead transfer it to another provider (if you want to). As soon as you take it out of the ISA account, you lose the tax free status on it, and can never replace it.

So as you mention you have other savings there, use those first for your boiler.

B+B are going through a rough patch, as are most UK banks / building societies, if you are really worried, ensure you don't have more than the FCSC guaranteed amount of 35K in their accounts.

johnbfan

I will leave what I can in - I have two ISAs with them and took a chunk out just in case circumstances meant I could not get at the money for a while and the boiler died totallly - its made a bit of a recovery at the moment but is on its last legs.

I think it has not helped that some people seem to have taken great delight in mocking B&B, and forgotten that other banks etc are doing exactly what they are doing.

barak

bristolleedsfan wrote: »

Some people don't seem to be aware that Building Societies have run into trouble in years gone by as well.....

Wasnt the carpetbaggers that made the decision that Bradford and Bingley would get so involved in buy to let and the associated problems caused by a housing market downturn...

Building Societies are rescued by the BS movement (Can you think of any that haven't been?).

Banks seem liable to be rescued - not by the government - but by us, the taxpayers.

I have been a carpetbagger, but I voted against B&B's flotation - I thought 'enough is enough' - and I don't think they would have been in this sort of trouble had they remained a mutual.

johnbfan

I too voted against the flotation. I don't want to buy anymore shares. Would prefered it to stay as a BS but my vote didn't count for much. It went ahead.

bristolleedsfan

johnbfan wrote: »

I too voted against the flotation. I don't want to buy anymore shares. Would prefered it to stay as a BS but my vote didn't count for much. It went ahead.

You and your family have enjoyed the dividends though havent u. :rotfl:

02-06-2008, 9:53 AM

#61

johnbfan
MoneySaving Convert

Join Date: Feb 2007
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If my savings with B&B are safe, and its just my 250 free shares (my kids have the same shares but no savings) then it looks like its might be a good idea to just ride it out.

especially if theres a bit of a loyalty bonus coming for staying put.



http://forums.moneysavingexpert.com/showthread.html?t=914855&page=4

bristolleedsfan

barak wrote: »

Building Societies are rescued by the BS movement (Can you think of any that haven't been?).

Banks seem liable to be rescued - not by the government - but by us, the taxpayers.
.

Government denied LloydsTSB the opportunity to rescue NR before the run on NR occurred partly due to competition issues and partly cos of guarantees that LloydsTSB sought.

As has been pointed out on her Bradford and Bingley dont appear to be actually in trouble, in any case a full takeover bid could yet be made for B+B.

Readers comments here are completely different to most on this forum. :eek:

http://www.thisismoney.co.uk/news/article.html?in_article_id=442387&in_page_id=2

anticlaus105

Had to go with move as it’s what I did. Thankfully my ISA transfer to Lloyd's completed 28th May.

Did this mainly for the rate but after Northern Rock had my suspicions about B&B.

ManAtHome

Still have some fixed-rate savings with them, but they've not been "up there" on the instant-access accounts for some time - why haven't you already moved?

Fella

Carpetbaggers haven't been responsible for the conversion of one single building society ever.

Every single conversion vote has gone the way that the building society board recommended. When the board has wanted a conversion they've got one. And when they haven't wanted one, they've ensured they didn't get one.