Hi, my girlfriend and I have saved up ~200k since we were planning on purchasing a house. Currently we have ~100k in an instant saver account with the hbos and the rest in a german bank account.
The instant saver account allows immediate access to the funds.

My questions
1. is my money save with hbos in case of a meltdown
2. could i loose any money if hbos were to follow northern rock and bear stern
3. am i right in assuming my whole 100k are protected or is it just 35k as they were talking about in the news with NR
4. would it perhaps be wiser to move the money abroad e.g. germany or switzerland

thats all for now
tia

Only £35K is protected. I would say get it all out of HBOS before the rush starts. As far as moving it abroad is concerned, with Sterling so low, its not a great idea. Spread your money around and place in fixed rate bonds for the next 12 months with building societies, which are less highly geared than the banks and / or with those banks with the least exposure to losses, eg Co-op, Lloyds TSB.

Check out MSE at the [updated] link below. This should answer a lot, if not all, of your questions.

http://www.moneysavingexpert.com/savings/s...vings#protected

HTH,
Cheers, Tucksy

Leave it in HBOS and spend countless nights worrying? Risk losing the lot?
OR get up at 5am get down the bank to beat the queue and take it all out and put it in the northern Rock - 6.35% instant access

How many people do you think will be taking their money out of HBOS??????? Quite a few I reckon - a trickle may become a flood - act rationally and get your money out now!

DB

ok thanks for the quick and informative replies, i will try and sort it out tomorrow

Nationwide , still a building society , there lending has not been as irresponsible and reckless as most banks , they have no share holders to pay dividends to , there products are reasonably competitive . Finally if people do withdraw there cash from banks the Nationwide imo is the place that will benefit the most therefore making it's books even stronger .

The ironic part is that a lot of people will also head for Northern Rock as they still have [for a year anyway] some reasonably good deals on savings and term deposits and a 100% treasury backed guarantee, regardless of amount, on ALL deposits.

Where else can you put £100k+ in one institution AND sleep easy at the moment? (aside from NS&I!)

Tucksy

I would go for NS & I. They have an Easy Access account that pays 4.65% for deposits over 50K, and its not taxed so is comparable to a 6ish % rate.

Also, ironically, Northern Rock.

I think you'll find that the Easy Access account is taxable.