HBOS - is money is savings secure if it goes under?

[PavlovtheCat]

I am just wondering as I know nothing about money.

Mortgage wise, we are fine - not HBOS. No worries there. However we have an amount of money in savings. A good amount.

If HBOS would get into difficulties, could these savings be in jeopardy?

The 'experts' on the news keep saying 'even if' they get into difficulties, people will not lose deposits...firstly this makes me afraid as that means they will get into difficulties! Secondly, are these deposits shares, or savings?

Cos, if necessary I am happy to sleep on top of my cash!

look here. Advanced talks surely means that they have been going on for a while?

Pavlov - take at least some of the money off the mortgage. Savings interest has to earn more after tax to compare with mortgage interest saved (where tax does not come into it). Also if you take it off the mortgage, it is 100% secure.

Since banking protection thingy is £35k, I wouldn't have more than £35k with one company, even though a poster has pointed out that it should be OK up to £70k if in joint names (I would be too afraid!). Unfortunately, I don't have this problem !

BossyKate - I think that's right. It is £35k per person per separate FSA registration. There are details online somewhere of how it works (FSA website I would imagine), but I haven't bothered looking them up and have simply started a new savings account at a bank which is not related to the group where I already have accounts.

If one account relates to your company isn't it in your company's name (i.e. not yours)? That might give a further £35k protection (a company being a separate person for legal purposes) although I am not sure.

righty i've found out halifax/if no longer has its own authorisation...

if it helps, the opinion of the BBC's business/economic editor Robert Peston (annoying man that he is) this am on R4 was that HBOS will not go under and savers should not worry

his blog

thanks, unituber, at your suggestion i have checked out the situation with the fscs and you are correct, my company is entitled to its own £35k worth of protection.

thanks very much for that

and also for ladymuck for posting the link

Our business account is with them so we are keeping a close eye on the amount we have in there. We had over the amount in there recently whilst we were waiting to pay our tax bill but that has gone now. Better safe than sorry.

Good grief!!!! Who'd have thought that my humble opinion would be so contreversial!!! I never said I was an investment banker and I also pointed out I was not a Fund Manager. I didn't think that someone would give a rat's ass about my opinion - the only reason I mentioned about where I worked is that I have an interest in all the goings on at the moment as I am surrounded by it at work, but also because it is the state of the economy (and my God, what a state - or am I not allowed to say that either??) I never said I was trying to pass myself off as anything other than a worker in that industry. It's none of your business what I do for a living Ladymuck and I really am surprised at the level you took this to. We were all shocked this morning to hear that LTSBS are in merger talks with HBOS but, if I am allowed to say this as well, at least it offers us all more security within the economy.

No one has to take a blind bit of notice of what I say and really it's neither hear nor there to me. I thought MN was all about chatting and having opinions on things. Obviously I was wrong. It's about censorship.

P.S. If the OP was actually that concerned I'm sure she would go to a Financial Advisor rather than some poster on MN.

Slickbird if you are not in a regulated profession or job, then you can obviously say what you want. If you are regulated then you are probably regulated even in the confines of a public internet forum, though as I don't know every code of practice out there hence I was curious in case you are regulated within working hours only - the professions with which I am familiar have to comply all the time. You obviously don't have to respond. But if you are prefacing opinion/advice by stating that you work in an investment bank then you are passing yourself off as someone with professional knowledge and expertise (unless of course you state upfront that you are the office cleaner).

Obviously HBOS doesn't want all of its clients moving deposits, but regardless of that, if a client is risk-averse then they should stick with less than the £35k limit. And not just at HBOS but pretty much at any institution/licence-holder bar Northern Rock.

I think you are being extreme. I understand about being regulated but just because I say what type of place I work in does not mean that I am 'passing myself off' as ANYTHING. From what I have seen, you have actually proffered more advice and opinions on this thread than anyone, therefore are YOU regulated, and what are you 'passing yourself of as'. I think you need to calm down a bit. Quite frankly.

ALL THIS IS EXPLAINED PRETTY CLEARLY HERE

the first £35K with it financial institution (not per bank) are protected.

There was aslo something inteh middle of that document about debts being taken off the £35K - so if you had a mortgage worth £20K and savings worth £35K you would only get £15K compensation...but the value of your mortgage would be reduced so you don't actually loose the £20K...you just don't have any choice in paying off your debt at that time.

Also Joint accounts get £70K proteciton.

There is also a table of who is related to who in the banking world...but bear in mind that there are talks of llyods TSB taking over HBOS - so may soon be 1 institution.

Looking my posts I have advised readers to be careful as to which advice they listen to, and to check the quality/source of the advice. I have pointed out where to find information on the FSCS scheme. I have suggested that a risk-averse investor should move any money in excess of £35k to another licence holder. I have asked whether there is anyone else who would disagree with that course of action.

I'm happy that I am in compliance with any regulations affecting what I have said.

I did not respond to a question as to whether savings are secure in HBOS with an "HBOS will be fine" answer.

I wasn't necessarily saying that I thought HBOS would be fine as an answer to the OP's question, I was merely, conversationally dropping into the thread what I personally thought, based on information that is AROUND in the newspapers, on the internet, in politics, from work. Who'd have thought someone would have such a bug up their ass about it? I'm quite sure that if someone from the FSA were to come along and look at my humble posting and the subsequent response, they would laugh, laugh, laugh.

Ohhoho. SOOOOO ridiculous. Right I've had enough of this nonsense.

Are you sure you are not LADYTROLL instead?

No probs in having any sort of opinion on chat threads. This was a request for advice, and I felt that your post could have been misinterpreted. Slickbird I'm sorry if you feel that I've overreacted but honestly the fallout for some of the posters from JudgeFlouncegate was not pretty, and I'd rather be branded as being ott than letting someone be out of pocket by not understanding the context of someone's comment/advice (however slim that chance is). As you get used to the MN you will appreciate that many of the professional posters are fairly careful as to how they word some of their posts.

And I've met at least one of the other posters on this thread in rl so I'm not exactly being an anonymous troll. I've even been recognised in RL from some of my posts (which is a little unsettling and usually indicates that it is time for a new name)

But come on, doesn't anyone want to debate what to do if you have £45k in an HBOS savings account?

Well, while I still feel it was an over reaction, I see that you are protecting people's interests, and actually, you have made me realise something, I wasn't aware that there were professional posters on MN (and I have been here a while, but I have been hanging around the 'Due in March' thread mostly) so I hear what you are saying, and will take it on board.

RE: 45K in savings, I don't even have 45 pounds right now, so my worries are all together different! (And no, I'm not the cleaner at work, I just have a high mortgage )

reading some of these posts it seems like someone needs to either A)go work for CAB B) take a chill pill, or C) get a vibrator! (and I don't mean Slickbird, you should not take it personally!) calm down people, there is enough stress in the world as it is!

what a nasty post, mumoverseas.

not meant to be nasty bossy! just illustrating that someone was clearly very worried about the financial situation at the moment and people stressing out and criticising other people who are trying to give helpful advice probably doesn't help! no need to be paranoid!

a very good point very well made dittany! Hopefully it will lighten the tone of this thread too!