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Old 18-03-2020, 13:23   #1
Raigmore
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Banks and Covid-19

I read in the papers today that there might be financial implications even on individual bank accounts if Covid-19 gets worse over coming months. This has me more than a little worried.

Having retired about 6 months ago, my wife and I placed out life savings in individual (not joint) savings bank accounts where they are still sitting. The original plan was to invest them safely in India when we went there this Spring (we have dual citizenship) to take advantage of the better interest rates there. Obviously, the trip is now postponed due to the pandemic and we decided to leave the savings in our banks, hers with Barclays and mine in Lloyds, with whom we've been customers for some 35 years.

But I understand that only £85,000 is guaranteed to be safe if a bank goes under and so am wondering if we should open other accounts and distribute the money? I suppose Barclays or LLoyds are relatively stable but one never knows. We have 'silent' accounts with Nationwide but rarely use them.
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Old 18-03-2020, 13:31   #2
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Opening other accounts to "spread" your money makes sense to me. My total assets in HSBC take me over the £85K limit and I to was thinking of reducing my pot in HSBC.

There's a lot of AML checks with putting in large sums of money in a single transaction, so you make have to make multiple payments over time to reduce your current pot.
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Old 18-03-2020, 15:22   #3
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Before this Covid-19 thing became an issue, I had discussed my situation openly with my Lloyds adviser, my IFA and accountant. They all knew and approved about my plan to invest it completely legally in India. The money was to remain in Lloyds for a few months only (likewise with Barclays for the wife) while we went to India, opened NRI (non-resident Indian) accounts and arranged the transfer, which would have to be done over 3 days and 3 different transactions due to limitations of max amounts allowed. If Covid-19 hadn't happened, we would already have been in India by now and negotiating opening of those accounts but the pandemic has put a spanner in the works. Now, because of the uncertain immediate future, we have to consider spreading the money to be on the safe side.
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Old 18-03-2020, 18:46   #4
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yep. i would spread.

maybe £50k each in premium bonds?
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Old 18-03-2020, 19:51   #5
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I'll call my IFA tomorrow, explain my concerns and ask his advice. He is a friend as well but has a history of cancer and could be immuno-compromised. Haven't spoken to him for a few months and hope that he is OK.
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Old 18-03-2020, 20:27   #6
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Bugger. Hadn't thought about this,.
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Old 19-03-2020, 09:34   #7
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Definitely sread the money around. You also need to make sure they are separate institutions to just a different brand. e.g. RBS & Nat West are the same institution so you only get cover up to £85k combined for anything within them and any other linked bank.

As always there is a really good explanation about this at MSE - https://www.moneysavingexpert.com/savings/safe-savings/
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Old 19-03-2020, 10:25   #8
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Just spoke to my IFA and they reflected what we all feel. One suggestion is that I open an account with Barclays with my wife's introduction and she does the same with Lloyds with mine. We already have accounts with Nationwide. That'll be a 3-way split but if £85,000 is the individual max for the safety net, we might have some spillover and need a fourth bank or building society that is not linked to any of the above. I was thinking of Santander with whom my IFA used to have links but their HQ is in Madrid. Would that be a bad idea?
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Old 19-03-2020, 10:31   #9
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As CJ suggests put money each in premium bonds (if you haven't already)
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Old 19-03-2020, 11:01   #10
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Spoke to IFA again and he did not seem all that keen with Santander; but he did say that Premium Bonds were a very good idea but there is a max of £50,000 per person, I understand.

So as things stand, we'll spread with Barclays, Lloyds and Nationwide first keeping amounts just under £85,000 pp in each account and invest the spillover with Premium Bonds. Does that sound like a good plan?
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Old 19-03-2020, 14:58   #11
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sounds sensible. at present its just keeping things simple/safe, over any type of financial planning. can always move stuff around later on.
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Old 19-03-2020, 15:13   #12
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Quote:
Originally Posted by Raigmore View Post
Spoke to IFA again and he did not seem all that keen with Santander; but he did say that Premium Bonds were a very good idea but there is a max of £50,000 per person, I understand.



So as things stand, we'll spread with Barclays, Lloyds and Nationwide first keeping amounts just under £85,000 pp in each account and invest the spillover with Premium Bonds. Does that sound like a good plan?
Not sure what the reservation about Santander is. The FSCS protection is the same regardless where the head office of the owning entity is based.
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Old 19-03-2020, 20:07   #13
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surprised nobody has mentioned Marcus Bank, all done online
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Old 19-03-2020, 20:18   #14
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https://youtu.be/XO6FW1aJkTw
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Old 22-03-2020, 21:50   #15
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Quote:
Originally Posted by Raigmore View Post
Spoke to IFA again and he did not seem all that keen with Santander; but he did say that Premium Bonds were a very good idea but there is a max of £50,000 per person, I understand.

So as things stand, we'll spread with Barclays, Lloyds and Nationwide first keeping amounts just under £85,000 pp in each account and invest the spillover with Premium Bonds. Does that sound like a good plan?
Take it out in cash, hide it under your bed.


Keep us in the forum involved by supplying us with your address for "security" purposes.


The banks you've mentioned and premium bonds seems a good idea.

..... As long as there's a government to guarantee the premium bonds. If that happened I don't think you'd be that worried about your finances however.
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