According to The Fool:

http://www.fool.co.uk/news/your-money/2007...d-you-make.aspx

"Banks in the UK are regulated and authorised by the Financial Services Authority (FSA) and must hold a banking licence. However, a number of banks may use the same banking licence - for example, Halifax, Bank of Scotland and Birmingham Midshires are all registered under Bank of Scotland plc. As you can only make one claim for compensation per FSA banking licence, if you should hold accounts with all three you would unfortunately only be able to make one claim.

Interestingly, however, although Sainsbury's Bank is part of the same organisation, as it is registered as Sainsbury's Bank plc and holds its own licence, if you held money here you would be entitled to another claim."

Any comments?

I have money in both HBOS and in Sainsburys for this very reason. Sainsburys is 50 50 between HBOS and Sainsburys. It is a separate entity as far as I understand it.

I pulled all my money out of Sainsbury's last week because I didn't realise this until today.

Out of interest, have you fully confirmed it to be 100% sure?

I only know that:

They have different licences from the FSA
Sainsburys is 50 50 owned by Sainsburys and HBOS
Um, that's it.

And this seems to back it up too.

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

I've looked on the internet and can't get much clear info.
Are Sainsburys a real bank or just another shop window for HBOS to get more market share?
(Like Tesco/ RBS).
I was thinking of an account with Sainsburys, I thought at the least supermarkets are wallowing in cash on a daily basis. They don't need to go to the BOE with cap in hand. Average High Street banks have about 10 grand in their vault. Note to armed robbers: better returns at out of town supermarkets and parking is no problem.

I read somewhere that Sainsbury's bank is a 50/50 joint venture between Sainsbury's and HBOS, hence the separate banking licence I guess.