"I don't advise getting your money out lightly. Indeed, such advise is generally thought grossly irresponsible, for it risks inducing a self reinforcing panic. Yet looking at the IMF projections, it's the only rational thing to do.
PS. I don't include creditors of the British arm of Santander in this warning, who are ring fenced from the mothership back bome in Spain, theoretically at least."
The last comment made me do a double take - if I had savings in Santander I would be thinking very carefully about all the options.
The last comment made me do a double take - if I had savings in Santander I would be thinking very carefully about all the options.
they can make all the guarantees they want but if they simply do not have the money they cannot get it out of thin air, like when a company goes bankrupt it cannot pay its debts if there is no money
When Spain finally gives up on austerity (and has to leave the EU?) the pain will have been for nothing. Even their prime minister is predicting another 1.3 million jobs gone by year end. Unemployment currently about 6.3 million could reach 8 million by the end of this year. It is an incredible situation.
The UK branch is fully owned by the Spanish Satander Group if they got into trouble the money in its British banks counts as part of its assets
Santander UK is Britain’s third largest bank in terms of savers like your reader with 25million customers.
The downgrading of the Spanish parent group and UK arm should not panic investors.
The UK business cannot divert funds back to the Spanish parent without the express go-ahead of the Financial Services Authority (FSA) in the City.
Maybe the first £85,000 is safe In UK Santander but what about the rest?
Up until the debacle in Cyprus I would have agreed with you - but as we saw, even though peoples deposits were covered by the guarantee scheme that didn't stop the distinct possibility that they would have to contribute to the bailout.
If people feel comfortable putting their money into Santander and more importantly, trust the government, then I hope they will be proven correct in their optimism. Personally I wouldn't take the chance.
Up until the debacle in Cyprus I would have agreed with you - but as we saw, even though peoples deposits were covered by the guarantee scheme that didn't stop the distinct possibility that they would have to contribute to the bailout.
If people feel comfortable putting their money into Santander and more importantly, trust the government, then I hope they will be proven correct in their optimism. Personally I wouldn't take the chance.
It's a difficult one, isn't it? People could actually cause a crisis for the UK part of the bank if they panic but, on the other hand, not acting could lead to them losing money (though that's unlikely). It's at times like these that economists usually go all game theory on us.
The UK branch is fully owned by the Spanish Satander Group if they got into trouble the money in its British banks counts as part of its assets
I checked all of this out when I opened a Santander UK account. Santander UK.
Financial Service Compensation Scheme
Santander UK plc is an authorised deposit taker and accepts deposits under the Santander and cahoot trading names. Your eligible deposits are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit protection scheme.
For further information download the Protecting your Money FSCS Leaflet, or visit www.fscs.org.uk for more information.
Important information about compensation arrangements
We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors - including most individuals and small businesses - are covered by the scheme.
In respect of deposits, an eligible depositor is entitled to claim up to £85,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £85,000 each (making a total of £170,000). The £85,000 limit relates to the combined amount in all the eligible depositor's accounts with the bank, including their share of any joint account and not to each separate account.
For further information about the compensation provided by the FSCS (including the amounts covered and eligibility to claim) please ask at your local branch, refer to the FSCS website www.FSCS.org.uk or call the FSCS on 020 7741 4100 or 0800 678 1100. Please note only compensation related queries should be directed to the FSCS.
"The rest" is as safe as it would be in any other UK bank or building society.
And that is why it is wise to spread your savings around which is what most sensible people do..
'The rest' is also not going to be a problem for many savers as there won't be a 'rest'. People only tend to have savings in that sort of league after retirement or if between houses.
'The rest' is also not going to be a problem for many savers as there won't be a 'rest'. People only tend to have savings in that sort of league after retirement or if between houses.
I agree but I was answering someone who wanted to know about "the rest".
It's a difficult one, isn't it? People could actually cause a crisis for the UK part of the bank if they panic but, on the other hand, not acting could lead to them losing money (though that's unlikely). It's at times like these that economists usually go all game theory on us.
Is it that difficult though? - you have an alternative of several banks that are not linked to ones that are essentially bankrupt, its not as though Santander are the only game in town.
Is it that difficult though? - you have an alternative of several banks that are not linked to ones that are essentially bankrupt, its not as though Santander are the only game in town.
Is it that difficult though? - you have an alternative of several banks that are not linked to ones that are essentially bankrupt, its not as though Santander are the only game in town.
You could always try the Co-Op..;)
As we've seen in the past, the globalisation of the economy leads directly to any problem having a greater overall impact than it would do if it occurred in a system of more isolated economies.
This is the main reason things ain't getting better.
The "guarantee" only works doesn't it because people keep calm and mainly don't turn up at the bank and ask for their money. What are the total deposits in UK Santander ?
When Spain finally gives up on austerity (and has to leave the EU?) the pain will have been for nothing. Even their prime minister is predicting another 1.3 million jobs gone by year end. Unemployment currently about 6.3 million could reach 8 million by the end of this year. It is an incredible situation.
If the scenario happens then cue mass civil unrest, economy into freefall and anarchy, and I do believe all those with savings in Spanish banks will endure a haircut as what happened in Cyprus.
It's a difficult one, isn't it? People could actually cause a crisis for the UK part of the bank if they panic but, on the other hand, not acting could lead to them losing money (though that's unlikely). It's at times like these that economists usually go all game theory on us.
I have expierence of removing money from a bank deemed at risk, simple fact is where your finances are concerned you have to be selfish and think of only yourself, if any one believes Santander is at risk or you have lost your trust in them then move your money elsewhere.
Be selfish and begger the consequences for the bank.
I have expierence of removing money from a bank deemed at risk, simple fact is where your finances are concerned you have to be selfish and think of only yourself, if any one believes Santander is at risk or you have lost your trust in them then move your money elsewhere.
Be selfish and begger the consequences for the bank.
No, it depends on your faith in the guarantee protecting deposits. That ultimately comes down to you faith in the government, not the bank.
Acting selfishly is rarely a good thing. I'm getting pretty sick of finding supermarkets stripped of bread, bottled water, eggs, etc., whenever there is a bit of heavy rain.
timetosaygoodby
Posts: 2,063
Comments
The last comment made me do a double take - if I had savings in Santander I would be thinking very carefully about all the options.
they can make all the guarantees they want but if they simply do not have the money they cannot get it out of thin air, like when a company goes bankrupt it cannot pay its debts if there is no money
No one here has a Santander of Spain account. Santander UK is registered here and is covered by our rules as far as compensation is concerned.
http://en.wikipedia.org/wiki/Santander_UK
The UK branch is fully owned by the Spanish Satander Group if they got into trouble the money in its British banks counts as part of its assets
I wish I had a pound for every time someone on this forum makes a comment about Santander UK it's been done to death fcuk knows how many times now.
Up until the debacle in Cyprus I would have agreed with you - but as we saw, even though peoples deposits were covered by the guarantee scheme that didn't stop the distinct possibility that they would have to contribute to the bailout.
If people feel comfortable putting their money into Santander and more importantly, trust the government, then I hope they will be proven correct in their optimism. Personally I wouldn't take the chance.
It's a difficult one, isn't it? People could actually cause a crisis for the UK part of the bank if they panic but, on the other hand, not acting could lead to them losing money (though that's unlikely). It's at times like these that economists usually go all game theory on us.
I checked all of this out when I opened a Santander UK account. Santander UK.
Financial Service Compensation Scheme
Santander UK plc is an authorised deposit taker and accepts deposits under the Santander and cahoot trading names. Your eligible deposits are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit protection scheme.
For further information download the Protecting your Money FSCS Leaflet, or visit www.fscs.org.uk for more information.
Important information about compensation arrangements
We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors - including most individuals and small businesses - are covered by the scheme.
In respect of deposits, an eligible depositor is entitled to claim up to £85,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £85,000 each (making a total of £170,000). The £85,000 limit relates to the combined amount in all the eligible depositor's accounts with the bank, including their share of any joint account and not to each separate account.
For further information about the compensation provided by the FSCS (including the amounts covered and eligibility to claim) please ask at your local branch, refer to the FSCS website www.FSCS.org.uk or call the FSCS on 020 7741 4100 or 0800 678 1100. Please note only compensation related queries should be directed to the FSCS.
http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&canal=CABBEYCOM&cid=1237843950945&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateG
"The rest" is as safe as it would be in any other UK bank or building society.
And that is why it is wise to spread your savings around which is what most sensible people do..
'The rest' is also not going to be a problem for many savers as there won't be a 'rest'. People only tend to have savings in that sort of league after retirement or if between houses.
I agree but I was answering someone who wanted to know about "the rest".
Is it that difficult though? - you have an alternative of several banks that are not linked to ones that are essentially bankrupt, its not as though Santander are the only game in town.
You could always try the Co-Op..;)
Or stick to building societies which I do.
The Co-Op is a Mutual - that is part of their problem.
As we've seen in the past, the globalisation of the economy leads directly to any problem having a greater overall impact than it would do if it occurred in a system of more isolated economies.
This is the main reason things ain't getting better.
one day,on a weekend
youll see
cannot access account
monday
we have "bailed in" the bank and taken 10% of your balance
thank you
have a nice day
i keep saying buy physical gold
and also keep it in your possession
if they want my gold theyll have to take it from me
Do you own a gun and a shack in the hills?
If the scenario happens then cue mass civil unrest, economy into freefall and anarchy, and I do believe all those with savings in Spanish banks will endure a haircut as what happened in Cyprus.
I have expierence of removing money from a bank deemed at risk, simple fact is where your finances are concerned you have to be selfish and think of only yourself, if any one believes Santander is at risk or you have lost your trust in them then move your money elsewhere.
Be selfish and begger the consequences for the bank.
No, it depends on your faith in the guarantee protecting deposits. That ultimately comes down to you faith in the government, not the bank.
Acting selfishly is rarely a good thing. I'm getting pretty sick of finding supermarkets stripped of bread, bottled water, eggs, etc., whenever there is a bit of heavy rain.
nope but a a stack of gold and silver
good luck when you get cyprused
oh sorry thats wrong all deposits are safe
sorry the first 85000 is safe
no sorry it was "extraordinary circumstances" meant we had to steal sorry refinance the banks with your money
but if will definately only happen in cyprus
the banks are very very safe and the bankers most definately not steal your money
except under very "extraordinary circumstances" that will not happen ok
we just put measures in place to allow us to do it
but it will most definitely not happen
well it could happen but it will be needed were all in this together
trust us we are very nice people