money in current account

[The Ben]

All this finance talk has made me wonder.....

What happens to money in your current account if your your bank went under... Im with HSBC I say they are unlikely to go under, but just wondered... Does that disappear to pay off creditors or do you have the opportunity to take it out before the creditors get their hands on it???
just a thought, say you had £100K in your current account what would happen to it??? not something you could forget about now???

[m4tt]

As far as i'm aware its still covered under the £35k rule. Although IMHO HSBC are the least likely to go under. They never had such a large mortgage book and it was more than backed by their deposits. Also they are enjoying growth and good profits in emerging markets which helps to offset any losses in the USA and the potential UK problems.

[falcemob]

You would be retty daft to have £100K in an HSBC current account with the interest they pay on them.

[Simpo Two]

£35K in any one bank. If more than that, spread it around.

[5yearstobuyatvr]

Could anyone clarify,35k in 2 seperate acconts at the same branch/bank would you be insured for 70k by the government or 35k?

[Engineer1]

as far as i know the accounts are added together, also i believe that if the banks are part of a group and the group goes then it is £35k in the group.

[The Ben]

ahh that makes sense..

How safe are barclays as a secure bank?? are they likely to go under??? That was the bank I really had in question, I kinda knew HSBC were pretty safe... MY dad has a load of cash, im a poor crappy newly released ex student so wondered if moving his account from barclays to HSBC would be more secure...

[Wacky Racer]

Why would anyone have £100k in a current account more than an hour or so??

[mgtony]

Max £35k even if you have money in two different banks that belong to the same group, ie Halifax/Bank of Scotland or Natwest/Royal Bank of Scotland. If you have it, spread it around. Anyone got an idea how long it would take to get hold of your money through the government if a bank goes under?

[supersingle]

How many banks will be left to spread your money around by the end of the week?

[130R]

It is 35K for each company independently registered with the FSA (so for example Halifax / Bank of Scotland / the AA etc are not independently registered) 70K for a joint account I believe.

[fieldl]

The Ben said:

ahh that makes sense..

How safe are barclays as a secure bank?? are they likely to go under??? That was the bank I really had in question, I kinda knew HSBC were pretty safe... MY dad has a load of cash, im a poor crappy newly released ex student so wondered if moving his account from barclays to HSBC would be more secure...

Barclays are VERY safe. Nothing to worry about there.

[nevpugh308]

5yearstobuyatvr said:

Could anyone clarify,35k in 2 seperate acconts at the same branch/bank would you be insured for 70k by the government or 35k?

It's per PERSON, per FINANCIAL INSTITUTION. So 2 accounts with £35k withe one bank, only £35k is covered.

Also be careful of institutions being owned by each other. e.g. if Lloyds buy Halifax, an account with Lloyds and an account with Halifax COULD be considered one £35k only (though this isn't always the case, e.g. Natwest and RBoS)

[Famous Graham]

This thread's a tad alarmist isn't it?

[mgtony]

nevpugh308 said:

5yearstobuyatvr said:

Could anyone clarify,35k in 2 seperate acconts at the same branch/bank would you be insured for 70k by the government or 35k?

It's per PERSON, per FINANCIAL INSTITUTION. So 2 accounts with £35k withe one bank, only £35k is covered.

Also be careful of institutions being owned by each other. e.g. if Lloyds buy Halifax, an account with Lloyds and an account with Halifax COULD be considered one £35k only (though this isn't always the case, e.g. Natwest and RBoS)

Surely this is exactly the case with Natwest and RBOS, why wouldn't it be?

[The Ben]

I was just wondering that's all... following mainly from a thread I read a while back, saying banks never lose!!!


Just also out of curiosity, how is it, if banks fk up, the customer can lose, but if the banks gain, the customer is never really better off. Im not suggesting the banks should deal in distribution of wealth when the times are good (not a bad idea mind) more wondering what happens to the people responsible for losses of the customer if someone does loose say £60k swallowed from their current account??


EFA

Edited by The Ben on Wednesday 17th September 21:51

[mgtony]

Before the grammar police arrive on the scene, lose not loose!

Edited by mgtony on Wednesday 17th September 21:36

[turbobloke]

mgtony said:

nevpugh308 said:

5yearstobuyatvr said:

Could anyone clarify,35k in 2 seperate acconts at the same branch/bank would you be insured for 70k by the government or 35k?

It's per PERSON, per FINANCIAL INSTITUTION. So 2 accounts with £35k withe one bank, only £35k is covered.

Also be careful of institutions being owned by each other. e.g. if Lloyds buy Halifax, an account with Lloyds and an account with Halifax COULD be considered one £35k only (though this isn't always the case, e.g. Natwest and RBoS)

Surely this is exactly the case with Natwest and RBOS, why wouldn't it be?

If they continue to hold separate banking licenses after a merger, the limit is £35k in each bank. The situation with lloyds TSB and HBOS isn't clear quite apart from the fact that merger talks aren't complete - they may well retain separate licenses and so there would be cover for £35k in each in spite of the take-over/merger.

[sparks87]

But seriously if you had £500,000 in the bank you wouldn't really want 14 bank accounts would you? I know you can "invest" in property/shares or whatever but what if you didn't want to?

[Skodaku]

Nee Naw Nee Naw. Evenin' all, 'eard there was a Bank loose and causing a disturbance. Can't be 'avin that, so come along quietly Mr Barclay before you trip over that step. Ooops, too late. Nee Naw Nee Naw.