How do we protect ourselves from a bank colapse?

Dymo King · #1 (**permalink**) 17-09-2008, 08:15

Given the financial turmoil at the moment, and that the Lehmans colapse will put strain other banks, what precautions can we take against the collpase of other banks - specifically Uk banks?

As I understand it businesses are not protected in the same way as consumers are, so if the bank goes bust I think we just lose our money...?

[and shortly after I wrote this I see this news... http://news.bbc.co.uk/1/hi/business/7620483.stm (in trouble HBOS in merger talks with Lloyds)]

UKSBD · #2 (**permalink**) 17-09-2008, 09:28

Small businesses are protected up to £35K per bank (as long as banks are
not part of the same group)
So if really worried, spread your money over different banks

Dymo King · #3 (**permalink**) 17-09-2008, 09:35

ok, feeling slightly better (though rushing to open more accounts

), but how is 'small business' defined?

UKSBD · #4 (**permalink**) 17-09-2008, 09:47

Just talking about this somewhere else,

a small business is as follows:
< 50 employees
< £6.5 mill turnover
< £3.26 mill in assets

More information can be found here,
http://www.fscs.org.uk/