Santander - Next bank in line for mass withdrawals of savings?

[anonymous-user]

Heard a spokesman for Santander defending the bank on Radio 4 this morning, presumably trying to put fears at rest over the bank being at risk and a 'run' on savings being started.

Kent County Council have already pulled their cash out.

http://www.thisismoney.co.uk/money/news/article-21...

Anyone care to speculate over how this might play out?

I personally don't think anything will happen unlike the whole Northern Rock scenario, but once people get it into their heads to take their cash out it will probably be difficult to persuade them otherwise.

[Pickled Piper]

Covered by the Government backed gaurantee scheme (can't remember what it is called). So makes very lttle difference to private individuals.

pp

[davepoth]

Pickled Piper said:

Covered by the Government backed gaurantee scheme (can't remember what it is called). So makes very lttle difference to private individuals.

pp

Businesses and people who live in Spain are another matter though; if I were in that situation I'd be considering my position.

[youngsyr]

Pickled Piper said:

Covered by the Government backed gaurantee scheme (can't remember what it is called). So makes very lttle difference to private individuals.

pp

In theory, but I have some meagre savings in Santander that are covered many times over by the guarantee scheme and I considered moving my money. After all, Santander doesn't offer me anything that other banks do not (new joiner bonus rates have now expired), so what's my incentive to stay with them?

If I had significant savings there, even if still below the guarantee threshold, I would probably move them just to avoid the potential hassle of having to use the guarantee scheme.

[LaurasOtherHalf]

Pickled Piper said:

Covered by the Government backed gaurantee scheme (can't remember what it is called). So makes very lttle difference to private individuals.

pp

how would it work if the bank went down though?
(speaking as someone who has filled his santander ISA's this morning!

[hornet]

I believe Santander UK is a distinct entity and so in theory shouldn't have exposure should the parent run into local (i.e. Spanish) difficulty. Plus there's the £85k FSCS cover. That said, I have the bulk of my savings with them and having been through the implosion of Kaupthing, have decided to move a chunk elsewhere (to a UK mutual), just to be on the safe side. Eggs, baskets and all that.

[fido]

I've moved all of my meagre savings out last year. Not that i don't trust the system, but i'd rather stick it in a good old British bank (even RBS). Basically, i trust the EU, the Spanish, or any of the Club Med countries alot less than even the French.

[Pickled Piper]

LaurasOtherHalf said:

Pickled Piper said:

Covered by the Government backed gaurantee scheme (can't remember what it is called). So makes very lttle difference to private individuals.

pp

how would it work if the bank went down though?
(speaking as someone who has filled his santander ISA's this morning!

You fill out a claim form and get your money back through the UK Government scheme. IIRC you should be reimbursed within a set time - several weeks?

pp

[98elise]

My company account is in a santander off shoot . I assume that the protection scheme doesn't cover business accounts?

Time to look at moving accounts, or moving as much as possible to my personal account.

Edit...checked on my banks website, and it looks as if small business accounts are covered. No need to start emptying accounts and putting it under the matress.

Edited by 98elise on Tuesday 15th May 12:58

[Bill Carr]

And so it begins!

[traxx]

I guess they could be in a lot of trouble

After all given what happened last time you would imagine most Councils will follow - even if there is currently no issue why take the risk?

[LaurasOtherHalf]

I guess this may have something to do with the great levels of interest they are offering in my instant access isa-3.3%.

Quite a bit more than their competition. Might hold off on the switch to their 123 account for the time being though

[anonymous-user]

davepoth said:

Pickled Piper said:

Covered by the Government backed gaurantee scheme (can't remember what it is called). So makes very lttle difference to private individuals.

pp

Businesses and people who live in Spain are another matter though; if I were in that situation I'd be considering my position.

I'd be more worried that my lovely villa is now worth about 2p.

[Digger]

What is the current protected limit? £80k?

[anonymous-user]

Bill Carr said:

And so it begins!

This could become like the petrol buying panic of the other month. I've got savings in Santander and know full well they are covered by the government should anything happen. I've come to the conclusion that 95% of the population are idiotic sheep

[Bluebarge]

St John Smythe said:

This could become like the petrol buying panic of the other month. I've got savings in Santander and know full well they are covered by the government should anything happen. I've come to the conclusion that 95% of the population are idiotic sheep

And you're probably right. But if you have more than £85k in savings with Santander, or don't want to rely on a govt scheme which sets out guidelines, but no cast-iron promises, of when you might get your money back, then it makes sense to start bleating. With plenty of solid banks out there, why leave your cash with a weak one?

[youngsyr]

Bluebarge said:

St John Smythe said:

This could become like the petrol buying panic of the other month. I've got savings in Santander and know full well they are covered by the government should anything happen. I've come to the conclusion that 95% of the population are idiotic sheep

And you're probably right. But if you have more than £85k in savings with Santander, or don't want to rely on a govt scheme which sets out guidelines, but no cast-iron promises, of when you might get your money back, then it makes sense to start bleating. With plenty of solid banks out there, why leave your cash with a weak one?

Even if you don't have more than the guarantee limit, I'd prefer the hassle of moving bank to the hassle of claiming your money back from the government in the event of Santander going under.

[El Guapo]

I'm slightly puzzled why Santander should be in trouble. I was under the impression that the Spanish banks did not buy into toxic debt.

[LaurasOtherHalf]

Bluebarge said:

And you're probably right. But if you have more than £85k in savings with Santander, or don't want to rely on a govt scheme which sets out guidelines, but no cast-iron promises, of when you might get your money back, then it makes sense to start bleating. With plenty of solid banks out there, why leave your cash with a weak one?

Because they're offering the best interest rates? Like everything else it's a gamble I suppose....

[anonymous-user]

youngsyr said:

Bluebarge said:

St John Smythe said:

This could become like the petrol buying panic of the other month. I've got savings in Santander and know full well they are covered by the government should anything happen. I've come to the conclusion that 95% of the population are idiotic sheep

And you're probably right. But if you have more than £85k in savings with Santander, or don't want to rely on a govt scheme which sets out guidelines, but no cast-iron promises, of when you might get your money back, then it makes sense to start bleating. With plenty of solid banks out there, why leave your cash with a weak one?

Even if you don't have more than the guarantee limit, I'd prefer the hassle of moving bank to the hassle of claiming your money back from the government in the event of Santander going under.

As someone has posted above, and so it begins......