Protect your cash savings (UK customers)

The following is an extract from a just-published article by Nadeem Walayat on securing your bank deposits in the UK:

UK Savers Emergency Plan:

a. Ensure that you have at least 2 current accounts across banking groups.

b. That you have procedures in place to ensure that you can act fast to initiate transfer of funds from instant access savings accounts, especially if your total funds with a particular banking group exceeds £50k / £83k (1st Jan 2011).The best strategy is to limit exposure per banking group to the limit.

c. Do not have ANY savings are fixed deposit exposure to banks that do not fall under the UK Financials Services Compensation Scheme.

d. Limit exposure to PIIGS banks, that is Greece, Ireland, Spain, Portugal and Italy as these are at the most risk of going bust thus triggering a lengthy process of Savers having to wait for compensation.

The following list represents Britians' largest deposit taking banking groups and the banks that fall under each.

Note whilst banking groups may have multiple licences as a consequence of mergers and takeovers, however they also may be in the process of merging licences so for ultimate safety one should remain focused on banking groups.

LLOYDS BANKING GROUP
Lloyds TSB Bank
AA Savings
Bank of Scotland / HBOS
Birmingham Midshires
Capital Bank
Cheltenham & Gloucester Savings
Halifax
Intelligent Finance
Saga

SANTANDER GROUP
Santander bank
Abbey National
Asda Savings
Alliance and Leicester
Bradford and Bingley
Cahoot
Moneyback
Honycomb
Nationwide Building Society
Nationwide Building Society
Cheshire Building Society
Derbyshire Building Society
Dunfermline Building Society

BARCLAYS GROUP
Barclays Bank
Standardlife Bank

HSBC GROUP
HSBC Bank
First Direct
Marks and Spencer Financial

ALLIED IRISH GROUP
Allied Irish Bank
First Trust

CITI GROUP
Citibank
Egg

CO-OPERATIVE GROUP
Co-operative Bank
Britannia
Smile
Unity Trust Bank
RBS Group
Royal Bank of Scotland
Nat West Bank
Direct Line Savings
Lombard
The One Account
Drummonds
Ulster Bank

Additional comments

Foreign Banks under UK FSCS Scheme - ICICI (India), First Save (Nigeria)

Small business are covered by the FSCS on the basis of 2 of following 3 conditions - upto a turnover of 6.5 million, less than 50 employees, balance sheet total not more than £3.26 million

Banks not under the UK FSCS.

Post Office - Currently Guaranteed by the Irish Government, pending coming under the UK FSCS.
ING Direct, Tridos - Dutch
Anglo Irish, Bank of Ireland - Ireland

Don't delay! Act today to form a quick personal savings protection contingency plan, otherwise you may wake up one day to find yourselves locked out of your funds Iceland style!

For more on how to protect your wealth from debt default bankruptcy see the Inflation Mega-trend Ebook (FREE DOWNLOAD)

Comments and Source: http://www.marketoracle.co.uk/Article24572.html

By Nadeem Walayat

http://www.marketoracle.co.uk

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