The safety of money in English bank
Have you ever wonder about how your money are stored in bank? The Polish people in the UK don’t know it.
I’m sure you remember when in all of messages there was information about queues to Northem Rock Bank in which people wanted to get their money because they were afraid that the bank will not pay them out. Below the photo showing the queue to bank.
The mentioned bank in 2008 was nationalised and the paying outs were secured by the government.
In 2009 the next banks started to benefit from government. It was called bail-out packages. The mentioned banks are as the following : Royal Bank of Scotland, Halifax Bank of Scotland (HBOS) and Lloyds TSB. Then the Polish people in the UK were not interested in that.
Are the money on English accounts safe?
Before the crisis in 2008 the answer was simple for that question according to the amount guaranted by government under the Guarantee Fund. However nowadays such fund does not exist where the governments have big debt.
From the longer time it is heard that the next banks for example in Europe have the complications. Here we can relate to the story of Deutsche Bank or recently described problems of banks in Cyprus.
Naturally the Bank of England (BoE) conduct tests so-called . stress tests and everything is OK. However there are signals that among economists and the other experts, the bubbles are still weak and their financial condition is much further from that one which you could expect in a bank.
How to make provision against nightmare scenario. The bank account in the UK.
The deposits are covered to 85 thousands pounds. More about deposit protection you can read on FSCS’s site: www.fscs.org.uk/
However modern times are uncertain and it is always worth to provision and conduct a diversification of saved money. You need to buy different qualities from compaigns and properties.
Well known saying „it is safe like in bank” today does not exist. In the pre-crisis times in 2007 – maybe but not today.
85 thousands of pounds is a big amount of money and you have nothing to worry about
Are you sure? Let’s imagine that you are going to sell house and then suddenly comes to the crisis in your bank. The value of house is bigger than 85 thousands. Appropriate seleciotn of bank for such transactions is essential. The house can cost even 300 thousands to half-a-million pounds.
Ciekawe ile osób bierze to pod uwagę w przypadku przelewów sięgających właśnie takie kwoty.
Dobrym rozwiązaniem jest rozbicie kont bankowych w kilku bankach, ale musisz pamiętać, że jest mały kruczek o którym nikt nie wie.
The protection of about 85 thousands applies under one bank group. In other words if you have bank accounts in different banks under one bank group then all you deposits in various banks are protected to the value of 85 thousands.
The question is what is the bank group?
It is worth knowing that the bank groups may consist of various bank brands. A good example is the Bank of Scotland group which includes the 8 different banks.
Bank of Scotland:
- AA (savings only)
- Bank of Scotland
- Birmingham Midshires
- Capital Bank
- Inteligent Finance
The other bigger group is Barcleys Bank:
- Barcleys Bank
- Barcleys Direct
It also concerns so-called building societies, what means the building associations which also work under different groups. One of the well-known is for example Yorkshire Building Society, which consist of:
- Egg (savings only)
- Yorkshire Shareplan
The Polish people in the UK don’t know much about the banking system in the UK
Nobody knows when the next crisis will come and it will happen for sure. It is the reason why you should diversify your assets by purchasing bullions, allocating the savings in different banks and above all to interest by wide economy to know how to care about their money.
Naturally the guarantee fund applies to not only the bank accounts. These are also investitions, pensions, insurances. For more information go to the following website: protected.fscs.org.uk/About-FSCS/ , where you will find more information.
I wonder if you knew that your money have warranty to about 85 thousand pounds but under the bank group or as you might think that each account has its own guarantee?