Discussion: Anyone know a good bank?

  • David9J
  • 10/10/08 31/05/09
  • a depositor
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Posted: Thu, 26/03/2009 - 22:37

Dear All,

I have just posted another Treasuerer's Blog here:

http://chat.ksfiomdepositors.org/blog-entry/treasurers-blog-anyone-know-...

Or, you can read it here!:

Hi Everyone,

So here’s a subject close to all our hearts: how shall we chose a savings account for DAG which we can be sure will give us our money back when we ask for it?!

Once the DAG legal entity is established one of the first tasks will be to set up at least one savings account. My recommendation is that we have accounts at two different banks. As this is a sensitive area I do not want to make any decisions without first consulting you, the depositors.

We will continue to need a current account and I see no reason to move away from Lloyds TSB. Not that I think they are wonderful but none of the other big banks are likely to be any better and moving accounts is a hassle. There are a couple of important reasons why we should open a savings account.

First, our cash flow is such that donations come in waves, when there is a drive to raise funds as we have just done in March. Expenditure is more regular in the form of monthly legal, PR and IT bills. Therefore we need to keep the surplus safe until we need it whilst earning a reasonable rate of interest as well.

Second, we should not keep all our eggs in one basket, as we are doing with Lloyds right now. And we also should not exceed the £50,000 compensation scheme limit with any one institution. This may even require us to have a third account some day.

I propose that we restrict the search to the UK because the DAG will be a UK company; our suppliers are pretty much based in the UK or at least are invoicing us in sterling; and because I am myself based in the UK. It needs to be an internet enabled account for the convenience of moving money quickly and cheaply between it and the current account.

My recommendations are: Northern Rock and Bradford and Bingley. Now just before you call the men in white coats to take me away and advertise for a new Treasurer, let me explain.

Yes, both banks failed already but that was in their previous incarnations. Both banks have reasonably good credit ratings at present. Northern Rock is now owned by HMG. They are forbidden by law to say in their marketing material that deposits are underwritten by the Government, but the reality is that I cannot see any realistic scenario under which a bank owned by HMG could or would not be able to pay out, except for economic Armageddon, in which case it might be the least of our problems. They are offering an e-Saver account with 2% interest.

Bradford and Bingley is now just a brand name for the Spanish bank Santander. This is a very large international bank which is generally regarded as safe. They seem to have positioned B&B as their internet savings arm. Their e-Savings account is offering 3% interest.

Other options I have looked at include Ulster Bank (too small), Sainsbury Bank (needs minimum £5k deposit), Nationwide (you need a Nationwide current account), RBS Natwest (unwilling to pay for Fred's pension and too close to KSF UK) and ING (covered by the Dutch rather than British DCSand also too controversial for this group!). Barclays and HSBC are solid banks but offer really paltry interest rates.

I have started a discussion forum on this subject here. Otherwise please email your thoughts to me directly: finance(?)ksfiomdepositors [dot] org. Thanks.

David

Over to you for comments.

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A suitable bank for all DAG members?

  • Flower
  • 18/10/08 31/05/09
  • a depositor
  • Offline
  • Mon, 30/03/2009 - 08:18

Dear Treasurer,

This gives me an idea. What about DAG recomending a suitable bank to all its members for their future banking needs? We can negotiate with the bank to give us some support in exchange for this recomendation.
In additon we could post a notice on DAG webiste with the recomendation or a link to the bank in question.

Some bank must be interested in the prospect of getting up to 8,000 additonal new accounts.


Hi TreasurerThe DAG

  • TORPEDO
  • 04/11/08 31/05/09
  • a depositor
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  • Fri, 27/03/2009 - 11:58

Hi Treasurer

I know nothing about them as a bank for our purposes, but I think you should try ING.

Then when the account is established we can legitimately ask them when their discussions to take on the Kaupthing UK deposists started, and fully expect a true and complete answer.

Best Regards

Torpedo


ING "Saving feels good"

  • smithAD
  • 10/10/08 31/05/09
  • a depositor
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  • Thu, 02/04/2009 - 12:17

makes me feel sick to the pit of my stomach every time I think of it. Feck the lot of them.


ING

  • David9J
  • 10/10/08 31/05/09
  • a depositor
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  • Sun, 29/03/2009 - 16:21

Torpedo,

Given our experience with banks in general I don't think that just asking ING nicely would provide any useful information at all. But they clearly had some advanced knowledge of HMG's intentions towards KSF UK, and for this reason alone I don't think we should give them our business.

I am also not sure how the Dutch authorities would treat a UK company in the unlikely event that their depositor scheme was invoked. ING is not under the UK's FSCS.

Regards,

David


David, As I assume the

  • expatfrance1
  • 15/10/08 31/05/09
  • a depositor
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  • Fri, 27/03/2009 - 04:48

David,

As I assume the account will be in the name of the DAG and not an individual, do we know that the UK Compensation Scheme covers non personal accounts upto £50,000?

Would not like to get caught out again!


Yes, on both counts

  • David9J
  • 10/10/08 31/05/09
  • a depositor
  • Offline
  • Fri, 27/03/2009 - 10:39

Dear Expatfrance1,

Yes, the account will be in the name of the DAG limited company. This is why we need to complete the registration of the company first as the bank usually wants to see the documents of incorporation.

The UK's FSCS does cover clubs, charities and small businesses. I have had that verbally confirmed by Lloyds TSB and in addition you can see the FSCS website here: http://www.fscs.org.uk/consumer/latest_news/

Regards,

David