Banks going Belly up ?!?! HELP

[IceBoy]

Hi All,

With all the bad news in the press....I have a real concern on my hands...My parents are abroad and I have a small six figure sum in the bank (which is their money)

I invested it in a bond with Barclays.

Yesterday I was told that I could not take the money out, as it was fixed for a year.

I can't sleep because I'm not sure what happens.....I understand £50k is guarnteed. so what happens if:

1. The govt. take over Barclays...Do I still keep all the cash????
2. Barclays goes under....I get 50k (I guess this is less likely)

I'm really stressing out.

Help.

Iceboy
PS. the money is in my name only.

[JazD]

My understanding is that the banks won't be allowed to go under so all should be hunky dory as far as the money is conerned. I'd be more worried about how much the £100k will be worth in a year - about 50p

[mouseymousey]

Can't really help but I wish I had a 'small' 6 figure sum of money

[sjg]

1. Yes.
2. Potentially, but the Govt will probably end up guaranteeing it just like every other bank collapse.

[merc_man]

Barclays will not go under because if it does we might as well just switch of the lights and head to Dover.

[Timsta]

Ok, you can't withdraw it, but can you close the account? Then they'll have to let you have it.

[Neil_H]

I'd say you should probably go down to your local branch with a shotgun and demand they give you your six figure sum - I've heard it works.

Seriously, stop worrying.

[IceBoy]

Thanks all....I've been bricking it for the last couple of days..parents just retired and left me to hold the fort for them for a couple of months...

Thanks once again.

IceBoy

[randomman]

Timsta said:

Ok, you can't withdraw it, but can you close the account? Then they'll have to let you have it.

Sme difference for a bond.

Barclays wont go under anytime soon. They wont let it IMO.

Its been a while since I worked in banking but when I did the payout was staggarded. Something like 100% of first few grand, then 80% of the next few grand etc. IIRC the most that was 'safe' was about 50k and you only got 35k back from that.

Check online for more recent numbers.

[anonymous-user]

I suggest your mum and dad stop trusting you

[Timsta]

randomman said:

Timsta said:

Ok, you can't withdraw it, but can you close the account? Then they'll have to let you have it.

Sme difference for a bond.

Doh, Completely missed that. Ta

[Davel]

Wait till you can draw it out and buy a new car!

Only kidding - your money will be fine, or we're all fcked!

[randomman]

Right, the payout we are talking about is the fianancial services compensation scheme.

And its not going to make pretty reading for 6 figure sums!

fscs said:

The maximum level of compensation you may receive from the scheme for a claim against an investment firm is £48,000 (100% of the first £30,000 and 90% of the next £20,000).

Had a fair few people that never put more than 30k in their accounts (dont forget its all accounts in any one place!). I thought they were mad years ago, now they seem to be the sanest people on the planet!

Edited by randomman on Wednesday 21st January 09:37