Is Money In Santander Business Safe?

[makeusvisible]

Our business account is with santander. I'm slightly concerned about what is happening in Spain at the moment, with talks of a bailout and the like. I'm slightly concerned about this being Iceland take 2.

I understand that if a bank is UK regulated (which Santander are), your money is safe should the bank go bust, owing to the Financial Services Compensation Scheme.

However, does this scheme apply to business bank accounts?And is there any danger with Santander being a foreign bank that money is at risk should things go badly wrong.

Santander must be just about the biggest bank in the country, and if things did go wrong would there even be enough cash in the FSCS to cover the huge sums involved.

Im not trying to cause panic, and I'm sure there is nothing to worry about....but would be interested to hear other people's thoughts.

 

[Richie N]

There was an article on this recently (try google?) Santander UK is different from the Spanish parent company, it's actually in a very good position apparently so I think it will be fine.
Check their website as I'm sure it's on there as well.

 

[makeusvisible]

Check their website as I'm sure it's on there as well.

Good idea....I'll check their website to see if they say they say they are in financial crisis.

 

[Richie N]

Good idea....I'll check their website to see if they say they say they are in financial crisis.

I said to check their website as they had a notice on there to customers in the UK explaining it's situation compared to it's parent company

 

[Esk247]

They say this:

Santander UK plc manages its affairs autonomously here in the UK. We are run by a local management team which is solely and fully accountable for the performance of Santander UK plc.

We take deposits in the UK and lend only to UK businesses and individuals. In this respect we are authorised and regulated in the UK by the Financial Services Authority.

 

[I Love Spreadsheets]

Esk - That just says its managed autonomously, but surely the British arm is owned by the Spanish business, and is thererore just anothe asset of the Spanish bank.

Which means if the Spanish bank goes it will be forced in to an asset selling/dumping position.

All in all I think everyones money is safe, I doubt the UK banks future is that clear.

 

[Esk247]

Esk - That just says its managed autonomously, but surely the British arm is owned by the Spanish business, and is thererore just anothe asset of the Spanish bank.

Which means if the Spanish bank goes it will be forced in to an asset selling/dumping position.

All in all I think everyones money is safe, I doubt the UK banks future is that clear.

It's a subsidiary but independent of Santander the group:

We operate under a subsidiary model which works to ensure that all subsidiaries in the Group operate on a standalone basis, retaining funding and liquidity management* at the local level. And, of course, our savers' deposits as with other UK banks are covered in accordance with the rules of the Financial Services Compensation Scheme, which protects deposits of up to £85,000 per eligible customer, (£170,000 for a joint account with 2 eligible depositors)

 

[businessfunding]

So, to further the question,

If Santander in Spain went t!ts up, the receivers (or Government bail-out) could order it's disposal (not a big issue if there is someone big enough to buy it), or order it to be split up (again not a problem for depositors)

But the big question is could they bleed the assets of UK back into Spain?

I believe not, but would welcome a qualified opinion.

 

[Greg Black]

I too am a Santander business customer, I checked this out last week and as far as I can tell the risks are minimal as we are dealing with a UK entity. I did think about shopping around for another bank though. Was thinking RBS or Lloyds

 

[makeusvisible]

Im also shopping around.....we were with Santander a couple of years ago, and moved a way (at considerable hassle and expense). We moved to Nat West.....and what has happened now....Nat West have transfered us to Santander with absolutly no option other than for us to move away again.

My main concern is if it all does hit the fan in Spain, will the FSCS cover business accounts, as well as personal. I just can't see how there is enough money in the pot considering the size of Santander!

 

[ThePublisher]

I too am a Santander business customer, I checked this out last week and as far as I can tell the risks are minimal as we are dealing with a UK entity. I did think about shopping around for another bank though. Was thinking RBS or Lloyds

My RBS Business Banking Direct account is being transferred to Santander - not through my choice!

 

[businessfunding]

My RBS Business Banking Direct account is being transferred to Santander - not through my choice!

You can object and become a 'determined stayer'.

 

[Liybpg]

If you really don't want to be transferred, raise complaints - as many as you can. They will never advertise that option (you can understand their position), but it is possible to stay.

 

[10032012]

MOVE YOUR MONEY!

Don't want to create panic but it depends how much you value your money at the end of the day. The UK subsidy could attempt to financially assist the Spanish parent company - this would be expected.

Banks have been bailed out before - it shouldn't be the taxpayer picking up the bill should the problem spread - so the Government guarantee shouldn't make things alright morally.

Many possibilities - asset stripping and account transfers to another bank - in some cases the Government might even restrict you taking YOUR money out.

Don't want to get carried away here.. My understanding is everything has a knock on effect... something simple as bad news can knock significant value off the LSE listed business.

The UK itself financially is not in the best situation - although not as worse as the likes of Greece etc we aren't quite out of the woods yet... The Europe Financial Crisis isn't going away: it will be here for many years to come.

It is interesting how many say that RBS and Natwest (same group) are transferring accounts to them and I believe Barclays were doing the same to certain accounts. It must be good financial sense to these other banks - which means Santander must be taking some risks... riding the tidal wave no doubt, lets hope they don't fall over in to the sea! Even if a bank make a bad decision in the meanwhile with your money they are doing alright but the story can soon change.

 

[StevensOnln1]

It is interesting how many say that RBS and Natwest (same group) are transferring accounts to them

They are being transferred because RBS/Natwest have been forced to sell off certain branches where they are viewed to have too much of a monopoly.

 

[123Simples]

Does it really matter which bank you are with nowadays? Santander UK is ring fenced from Spain, but then again politicians in our country tell us that we are seeing grass roots of recovery too
Use a pillow!

 

[CherylDavis]

I chose Lloyds last year based on the fact I thought the spanish (and any other eu country) banks would get into trouble on the Euro. I was right.

 

[roydmoorian]

Best analogy I've read of this latest handout to Spain is it's the equivalent of freezing to death in the Arctic, & pissing in your trousers to get warm

(or rather

)

 

[Richie N]

I chose Lloyds last year based on the fact I thought the spanish (and any other eu country) banks would get into trouble on the Euro. I was right.

Lloyds who had a major bailout from the taxpayer

 

[Big Pete]

Spain at the moment , UK soon , do NOT think for one moment its just Spain , Greece , Italy , Ireland etc they are all interlinked like a shakey pack of cards

Santander is one of the safe ones its the smaller Spanish Banks that need bailing out , theres loads of them . these are struggling due to many UK residents buying silly flats well apartments if you give them a fancy name but flats for silly money on 100% mortgages and now scuttled back to the UK and left them abandoned and the loans not payed.. creating price crashes and even more to get into negative equity and then in turn run away , leaving the bank to try and get its money back ..

sad times ahead for sure , its like a film running in real life speed which we all know has one nasty ending to come , we just do not know when it eventually will but we know its coming ..

There will be winners and losers the winners are the ones who have nothing , the losers will be the ones who have worked and made savings or assets .. hmmmmmm normal UK way i guess

 

[BustersDogs]

I've just joined the FSB so am looking into moving my money into the co-op - because I live right opposite a post office. Just too convenient! However the rest of my life is in Santander, including mortgage, current account, all but one savings account and pension.

I'm trying not to worry...

 

[Bobb1979]

I have drawn down the Business Current Account with Santander down to just £2000 as a running float. I don't trust their processes and accuracy since Alliance and Leicester was eaten up by them.

They charged me £18 as miscellaneous charges, when I called them up no one knew what that was for after investigating. Branch access locally is also poor for their specific atm paying in. Also we did a large transfer a week ago and its only just showing up that its been keyed

I wouldn't be surpri1ed if there was another run on the bank like Northern Rock ...