Which High St Bank(s) / spreading money around

[menousername]

anyone feel umcomfortable having a particular level of exposure to one bank in this new world, and spread their money around?

what would you say are the best banks to be with? In terms of reliability, their online banking facilities, etc etc.

I have no need or desire for anything funky beyond the usual tax free ISAs etc which are already used up, not looking to - nor do I have that level of cash to consider - investing in property or real assets etc etc just like the reassurance of (theoretically) being able to transfer funds around quickly should a bank take another hit etc etc

top 3 or 4 in your eyes?

• edit, depending on where we are at in the next 6-18 months I would prob be in need of my first mortgage, if that changes your advice

Edited by menousername on Friday 9th May 17:05

[JoeBolt]

UK regulated banks should come under the Financial Services Compensation Scheme (FSCS) meaning that the first £85,000 of your savings is protected by the government.

Beware that this £85,000 is per financial institution. For example; Halifax, Bank of Scotland and Birmingham Midshires are part of the same group and therefore form one financial institution. This means that if you had lets say £50,000 invested in each (£150,000 total) then only £85,000 would be protected under the scheme.

For safety, make sure that sums exceeding £85,000 are split between different financial institutions.

[LooneyTunes]

JoeBolt said:

Beware that this £85,000 is per financial institution. For example; Halifax, Bank of Scotland and Birmingham Midshires are part of the same group and therefore form one financial institution. This means that if you had lets say £50,000 invested in each (£150,000 total) then only £85,000 would be protected under the scheme.

Not necessarily the case. Depends on the banking licenses in force. If the brands are operated under separate licenses then it's £85k each time.

In any event the £85k is an arbitrary number. There is no way any UK government will allow a major bank to wipe out private savers.

I would not however rely on any bank that "passports" in from overseas being supported (by either the British or home government) above the cap.

[JoeBolt]

Agreed, there is no simple definition of 'financial institution'. RBS and NatWest for example offer separate £85,000 limits but are part of the same conglomerate. However, there are numerous websites which provide this information, for anyone concerned about keeping too much money in one place.

Personally, if recent history is anything to go by (RBS/Lloyds/Northern Rock), I don't think there is too much to worry about when saving with the major UK banks and Building Societies, (abysmal interest rates excepted). The Government just won't let them fail.

[markcoznottz]

Yep it's a PR exercise nothing more, don't lose any sleep over it. 2 things the government won't let happen, riots and runs on banks because it disrupts the status quo. Northern rock went from the riskiest bank in 100 years to the safest when the state guaranteed all deposits therin, an unprecedented move.

[menousername]

thanks guys did not consider that factor, financial groups - real good advice thanks

[menousername]

guys as someone who may be looking to get a first time mortgage in the next couple of years who would you recommend me building up a banking record with (appreciate some of these may be related entities)

Lloyds?
Halifax?

Already with Barclays and HSBC, looking for a back up. Not keen on Santander tbh