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Original poster

Help, please, asap, if you had a six figure sum in HBOS would you move it? And if so, where?

34 replies

WideWebWitch · 17/09/2008 19:52

Not for me, I hasten to add, it's for PIL. He has a Lloyds account and it's mostly in instant access account so he could go and TT it tomorrow. I said I thought he probably ought to move it to Lloyds, what should I advise him?

I've said I think it unlikely that anything will be allowed to happen to HBOS but all and any advice most welcome.

I've said I'll call him back tomorrow, poor thing, he's worried. TIA for any words of wisdom.

OP posts:
Original poster
WideWebWitch · 17/09/2008 19:52

This is his life savings btw.

OP posts:
ruddynorah · 17/09/2008 19:53

tbh i'd split it around so i'm covered by FSA. i'd also look at geting a better rate of return than an instant access thing.

MaloryDontDiveItsShallow · 17/09/2008 19:53

This reply has been deleted

Message withdrawn at poster's request.

Bewilderbeast · 17/09/2008 19:54

if he has less than 35000 he is fine as it's all backed by a government guarantee. If he has over 35000 then he could lose anything over that amount but IMHO it is unlikely the the govt would let HBOS go under - see northern rock as an example

Twelvelegs · 17/09/2008 19:56

Yes advise PIL to move their money asap and then keep watching the news fro everyone else doing the same and watch HBOS fold!!
It's always better to spread it around I suppose some high riska dn some low. Some may even argue it's a good time to invest as what is down right now may climb back up and always make a profit.
Have a look at Martn Lewis's website, there's bound to be a chat about it!!

RandomIdiot · 17/09/2008 20:00

I thought HBOS was one of the ones advertised as at risk???

I don't think I would move it to lloyds though as I think I saw on AOL news that a merger between HBOS and Llyods was on teh cards which would make them the same "financial institution"

As others have said make sure that you always have less than £35K with any one institution to ensure that he has protection from them going under....

That doesn't just apply to teh current climate IMO either.

mcfee · 17/09/2008 20:00

LloydsTSB are taking over HBOS anyway so he's best to leave it where it is.

Hulababy · 17/09/2008 20:10

I agree with Malory - get him some proper financial advice. He doesn't want, or need, that amount of money just sitting in an account like that.

BreeVanderCampLGJ · 17/09/2008 20:11

35 K Here

35k there

That way he is covered.

artichokes · 17/09/2008 20:12

I have split our savings into £35k chunks and distributed them across banks with differnt owners. IMO that is the only safe behaviour right now.

Or put it all in Northern Rock - that is pretty safe.

artichokes · 17/09/2008 20:12

I have split our savings into £35k chunks and distributed them across banks with differnt owners. IMO that is the only safe behaviour right now.

Or put it all in Northern Rock - that is pretty safe.

SorenLorensen · 17/09/2008 20:14

35K here, 35K there...that's what I've done

yousaidit · 17/09/2008 20:17

Oh, sorry, i was goingto join in, but i suppose i won't have as much impact wafting my 35p here, 35p there at the counters in the banks, will i?

Ajoke, NOT a dig!!!!

penona · 17/09/2008 20:19

Northern Rock is a pretty safe bet, since it's government owned it can't really go bust any more.
35k in different institutions is fine for about £150k-£200k but not really practical if he has a much larger sum of money.

If it were me, I would probably go £35k in a few big names (HBOS, Lloyds, Barclays, Nationwide, ING etc) and the rest in Northern Rock. But taking proper financial advice is a good idea. Although I don't think there are any guaranteed safe places at the moment.

Can I also say 'I AM NOT AUTHORISED TO GIVE INVESTMENT ADVICE' Don't come back and sue me/MN if it all goes wrong!!!!!!!

artichokes · 17/09/2008 20:26
RandomIdiot · 17/09/2008 20:28

penoma - there is no point going into HBOS adn llyods as if this deal goes through they will class as 1 financial institution.

It is really important to go to different financial institutions not just different banks. Multiple banks can be part of the same finacial institution.

here for more info

yousaidit · 17/09/2008 20:29

No no no i don't for one minute think you were boasting!! I was more smirking at my duire finances where i was chuffed to actually have change in my purse today to pay for parking rather than risk legging it to the bnank and back without ticket!! I take my cap off and salute anyone that has a little financial comfort in current climes, but sorry its from a crap reason of your mum passing away

RandomIdiot · 17/09/2008 20:31

and if PIL have a joint account they are actually protected to £70k.

oH AND CAN i PUT THE SAME DISCALIMER ON ALL MY POSTS AS PENONA PLEASE?

Can I also say 'I AM NOT AUTHORISED TO GIVE INVESTMENT ADVICE' Don't come back and sue me/MN if it all goes wrong!!!!!!!

SorenLorensen · 17/09/2008 20:45

And mine wasn't a dig at you, Artichokes - I cross posted responding to LGJ's post which made me laugh. I'm sorry about your Mum.

artichokes · 17/09/2008 20:57

Thanks - I jsut wanted to clarify.

Random - is that true about joint accounts being protected to £70k? Earlier today a Nationwide advisor told me it wasn't.

LadyMuck · 17/09/2008 20:59

Here is the FSCS FAQ. First question seems to confirm that joint deposits are protected up to £70k.

RandomIdiot · 17/09/2008 21:01

Martin Lewis says so in my link...but I guess if in doubt don't risk it.

Original poster
WideWebWitch · 17/09/2008 21:11

Gosh thank you all for this advice everyone. Penona, it is more than £150k. I am going to tell him to a) get some proper advice and b) move it to Northern Rock as an interim measure but leave £35k . It's not a joint account so not up to £70k.

OP posts:
LyraSilvertongue · 17/09/2008 21:16

Most of our inheritance from DP's dad, who died earlier this year, is in HBOS shares.

penona · 17/09/2008 22:14

Just seen the news, Lloyds agreed to take over HBOS, so looks like your PIL money is safe for a while WWW. But would still take some advice on how to manage the risk of it.

And that just reduces the number of separate savings accounts out there for the £35k.

(randomidiot - great name - yes, I meant to say Lloyds, HSBC ... not HBOS.... derr....)