Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • MarcoM
    • By MarcoM 8th Feb 18, 9:18 AM
    • 503Posts
    • 69Thanks
    MarcoM
    HSBC Safety
    • #1
    • 8th Feb 18, 9:18 AM
    HSBC Safety 8th Feb 18 at 9:18 AM
    Hello,


    I am of course aware of the 85k limit for government protection but as I have sold some of my investments in order to purchase a property I was wondering what people's views were in terms of storing all these proceeds with one bank bearing in mind that the sum is well above the protection threshold.
    Said bank would be HSBC.
    I could open other accounts but would not make much more interest than the 0.65% cash ISA interest offered by HSBC who I already bank with.
    In a nutshell, would you trust a bank like HSBC with all of your funds for a period?


    Thanks
Page 1
    • Money Help
    • By Money Help 8th Feb 18, 9:38 AM
    • 63 Posts
    • 26 Thanks
    Money Help
    • #2
    • 8th Feb 18, 9:38 AM
    • #2
    • 8th Feb 18, 9:38 AM
    There is a temporary high balance protection offered by the Financial Services Compensation Scheme up to £1 million: https://www.fscs.org.uk/what-we-cover/questions-and-answers/qas-about-temporary-high-balances/

    But I don't believe this will apply in your circumstances if you have just sold investments that were already yours.

    Apart from that you are right in saying the only protection is the £85k. So who knows what will happen to HSBC. Will the government allow a bank like that to fail but then again would taxpayers be able to stomach another bank bailout?
    I'm a Chartered Financial Planner. Trying to be helpful without giving advice.
    • CatLady13
    • By CatLady13 8th Feb 18, 9:49 AM
    • 46 Posts
    • 42 Thanks
    CatLady13
    • #3
    • 8th Feb 18, 9:49 AM
    • #3
    • 8th Feb 18, 9:49 AM
    NS&I have protection up to £1million, might be worth putting your money in their savings account or income bonds if you are concerned.
    • Glen Clark
    • By Glen Clark 8th Feb 18, 9:50 AM
    • 4,111 Posts
    • 3,139 Thanks
    Glen Clark
    • #4
    • 8th Feb 18, 9:50 AM
    • #4
    • 8th Feb 18, 9:50 AM
    Hello,
    In a nutshell, would you trust a bank like HSBC with all of your funds for a period?
    Originally posted by MarcoM
    I would - we have to take bigger risks than that every day.
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
    • Glen Clark
    • By Glen Clark 8th Feb 18, 9:52 AM
    • 4,111 Posts
    • 3,139 Thanks
    Glen Clark
    • #5
    • 8th Feb 18, 9:52 AM
    • #5
    • 8th Feb 18, 9:52 AM
    would taxpayers be able to stomach another bank bailout?
    Originally posted by Money Help
    When were we ever given the choice?
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
    • jamei305
    • By jamei305 8th Feb 18, 10:15 AM
    • 319 Posts
    • 379 Thanks
    jamei305
    • #6
    • 8th Feb 18, 10:15 AM
    • #6
    • 8th Feb 18, 10:15 AM
    NS&I have protection up to £1million, might be worth putting your money in their savings account or income bonds if you are concerned.
    Originally posted by CatLady13
    Their protection is unlimited, only capped by the maximum balance per account. For example you can have £2 million in an investment account at 0.95%

    The problem with them is that their ISA doesn't allow transfers in. So if you have a large ISA balance to protect, NS&I won't be useful.
    • planteria
    • By planteria 8th Feb 18, 10:30 AM
    • 4,972 Posts
    • 1,104 Thanks
    planteria
    • #7
    • 8th Feb 18, 10:30 AM
    • #7
    • 8th Feb 18, 10:30 AM
    NS&I is a a good shout, but fwiw i wouldn't have any concerns for the 'safety' of cash in HSBC accounts.
    • MarcoM
    • By MarcoM 8th Feb 18, 10:34 AM
    • 503 Posts
    • 69 Thanks
    MarcoM
    • #8
    • 8th Feb 18, 10:34 AM
    • #8
    • 8th Feb 18, 10:34 AM
    Their protection is unlimited, only capped by the maximum balance per account. For example you can have £2 million in an investment account at 0.95%

    The problem with them is that their ISA doesn't allow transfers in. So if you have a large ISA balance to protect, NS&I won't be useful.
    Originally posted by jamei305


    hit the nail on the head there.
    I did look at NS&I but the money is in ISA.
    • MarcoM
    • By MarcoM 8th Feb 18, 10:36 AM
    • 503 Posts
    • 69 Thanks
    MarcoM
    • #9
    • 8th Feb 18, 10:36 AM
    • #9
    • 8th Feb 18, 10:36 AM
    I would - we have to take bigger risks than that every day.
    Originally posted by Glen Clark

    I guess this Epicurean approach to the issue is probably a wise path to follow.
    • Eco Miser
    • By Eco Miser 8th Feb 18, 10:50 AM
    • 3,444 Posts
    • 3,234 Thanks
    Eco Miser
    If you are about to buy a property to live in (you've made an offer?), the temporary high balance provision would apply.
    If you've merely withdrawn the money to be sure of the amount when you get round to buying, it won't.

    If you're about to spend the money, there doesn't seem to be any point in keeping it in the ISA wrapping if you can get a better return elsewhere, but how much would you get anyway, since it's about to be spent.
    Eco Miser
    Saving money for well over half a century
    • MarcoM
    • By MarcoM 8th Feb 18, 10:53 AM
    • 503 Posts
    • 69 Thanks
    MarcoM
    If you are about to buy a property to live in (you've made an offer?), the temporary high balance provision would apply.
    If you've merely withdrawn the money to be sure of the amount when you get round to buying, it won't.

    If you're about to spend the money, there doesn't seem to be any point in keeping it in the ISA wrapping if you can get a better return elsewhere, but how much would you get anyway, since it's about to be spent.
    Originally posted by Eco Miser

    No offer as yet just looking. Possible offer territory within the next week or so.


    I see your point about ISA and all that however I am not banking on necessarily finding a property we like soon and having an offer accepted as vendors and EAs are currently overpricing stock.
    So as it has taken us years to have a decent ISA holding I would be reluctant to get rid in case I then decide to re enter the stock market, at least partially.
    • ValiantSon
    • By ValiantSon 8th Feb 18, 1:48 PM
    • 1,596 Posts
    • 1,339 Thanks
    ValiantSon
    Although the risk is small and we take bigger risks each day, it is an unnecessary risk. I see no point in taking unnecessary risks, so I would open another account and split my funds to ensure protection.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

376Posts Today

4,776Users online

Martin's Twitter
  • RT @mmhpi: Third time lucky? After being delayed twice, tomorrow MPs are due to debate our #RecoverySpace proposals in parliament. @helen_u?

  • Just a quick note. I've been overwhelmed by the strength of support by my campaign to stop facebook fake ads today? https://t.co/KexhjVVznY

  • RT @mmhpi: On the eve of tomorrow's #RecoverySpace debate in parliament, we just delivered our 10,000 letters to the Chancellor. People in?

  • Follow Martin