What does this mean for Bradford and Bingley savers?
As with the demise of any bank operation there is always some concern from account holders as to the security of their money. However, the Treasury has stepped forward at a very early stage to confirm that no account savers will lose out and their funds will be transferred to a much stronger parent company in due course. So what do that mean in practice?
While the small print has not yet been confirmed it looks as though the savings operation will be taken on by a third party - such as Santander. While this is good news for savers it does raise questions for those who may have savings with any one of the Santander UK operations such as Alliance and Leicester and Abbey. The maximum £35,000 protection figure per company will still hold true and there are concerns that those who may have total funds above and beyond the £35,000 figure between the Santander operations may actually see their protection weakened.
Even though there is very little chance that a group with the balance sheet and power of Santander would go under, we have also said that about other major companies over the last few months. There is no doubt that some UK savers will be reviewing their protection arrangements over the next few days and weeks.
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