What happens when a bank collapses?

divegirl | 18:03 Tue 16th Sep 2008 | Business & Finance

8 Answers

Having just heard on the news that Halifax could collapse, I wonder if someone could explain what that means to customers like me!!! I do not have a mortgage with them, but my wages are paid into them, as are my tax credits I try to keep my balance at around the �800-�1000 mark, I also have a thousand in a savings account. If I were to wake up tomorrow and they'd 'collapsed', would I lose my money?

Lisa x

Lowest ever FTSE mark?

accounting information regulations

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Rollo

You should be fully covered if you have less than �35,000.

Read this for more details:

http://www.moneysavingexpert.com/savings/safe- savings#protected

divegirl

Question Author

lol....well I have a lot less than 35K!!!!
Thanks for your reply......What happens to money that is paid in via BACS though?

Lisa x

CheekyChops

It doesn't make any difference how it is paid in. As long as you have under �35K you will be OK. I(f the worst should happen and they collapse, hopefully you would open an account elsewhere and advise your payroll dept of your new details ASAP!

divegirl

Question Author

Many Thanks.

abstract

What happens when a bank collapses?

then the poor moles,sewage and underground workers get crushed!

dzug

In the worst case 'OK' means that you will eventually get all your money back, not that your account will continue to run as normal

CheekyChops

That's what I meant dzug, I didn't make it very clear!