Personal Finance

[BobbyBobBob]

I was just wondering.............for those people that have savings in banks in the UK, would the money still be safe if the banks just completely collapsed. After what's happened in Cyprus, I fear something similar will happen over here eventually.

I have a bit of savings in saffron building society and they are covered by FSA up to so many thousand pounds. Would people still be covered by FSA if these banks collapsed, or would the FSA not be able to pay compensation either?

[Sqad]

BBB if the naks collapsed as you have suggested then the £80,000 cover per client per bank would be worth nothing.

Quite a dilemma.....interest rates are appallingly low and confidence in the banks is following.

You have 2 choices as i see it. Either draw your money out or feep ypur fingers crossed that the banks stay intact.

[craft1948]

I love feeping my fingers.........

[tonyav]

My fingers are well feeped.

[Peter Pedant]

I am not sure if I understood everything

You are protected for deposits up to £75k in a British bank and that includes the Saffron savers' bank. 150 big ones for a married couple. If the Saffron collapses - you are still safe.


If you go for a foreign bank you may get a higher rate of interest and this reflects a greater risk. People in the Bank of Cy seems to have forgotten this. The rate you got there was 2% compared to the peanuts of 0.5% here. The only was they could pay that apparently was to keep on taking deposits and pay the interest out of that/them. Hold it doesnt that sound like a giant Ponzi scheme. Yes it does -but there seems tobe v little comment about it.

[Peter Pedant]

a collapsing nak sounds painful: should I take paracetamol ?

[riptide]

Do we honestly think that all the banks are going to collapse, somehow I think not, the whole country would not function, people would not get paid, pensions would not be paid, etc, etc.

[dzug2]

If the banks collapsed there would be no money. Full stop. Doesn't matter where it is, in the bank or in your hand - still worthless.

[dnairb]

The first £85,000 saved per financial institution is safe, due to the Financial Services Compensation Scheme which applies only to those institutions regulated by the FSA.
The issue is the wording "per financial institution". If you had savings in 2 banks which are actually part of the same group, such as Abbey and Santander, then you would only have protection up to £85,000, not £170,000