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Why you can bank on us
With the recent turmoil in global financial markets we understand that some clients may be worried about the safety of their money.
We have provided this information to reassure you about our position as Britain's largest savings provider with over 100 years' experience looking after our clients' money.
Stability and certainty
St. James's Place Bank is a division of Bank of Scotland plc, which is a subsidiary of HBOS plc.
HBOS and Lloyds TSB have joined together and are now part of a new group, Lloyds Banking Group.
The new group is well capitalised and financially strong. This strength places us in an even better position to meet the challenges of the current financial climate and any future challenges we may face.
Our aim is to be the leading financial services organisation in the UK, using our strength and size to provide excellent customer service and create great value products for our customers.
Added peace of mind from the Financial Services Compensation Scheme
The Financial Services Compensation Scheme provides customers with extra peace of mind that their money is safe.
HBOS and Lloyds TSB savings will continue to be covered separately under this scheme, as both organisations will remain covered by separate banking licences.
Some more detailed Questions & Answers on the compensation scheme are outlined below.
What is the Financial Services Compensation Scheme?
The Financial Services Compensation Scheme (FSCS) can pay compensation to consumers in the event that an authorised financial services firm is unable to pay back clients' money and generally cannot meet claims made by clients against it.
The FSCS is an independent body set up under the Financial Services & Markets Act 2000. The scheme applies to different products in different ways.
How much of my money in my St. James's Place Bank accounts would be protected by the FSCS?
You can currently claim up to £50,000 in compensation for your money held in savings or current accounts with a member of the scheme. If your money is in a joint facility, each of you can claim for up to £50,000.
That means that if there are two of you on the facility you are jointly protected for up to £100,000 compensation. The FSCS assumes that the money is owned equally between the account holders (unless evidence shows otherwise).
What about my money in accounts in other HBOS and Lloyds TSB divisions?
Under the Financial Services Compensation Scheme you are covered separately for the deposits you have with each separately licensed bank.
HBOS and Lloyds TSB savings will continue to be covered separately under this scheme, as both organisations will remain covered by different banking licences.
Money held in current or savings accounts with us is covered by the Bank of Scotland banking licence.
£50,000 is the maximum compensation you could get for all of your money held in current accounts or savings with Bank of Scotland plc. These include accounts held in the following trading names and divisions:
Halifax
Bank of Scotland
Birmingham Midshires
Intelligent Finance
St. James's Place Bank
St. James's Place Private Bank
AA
Saga
Lloyds TSB has three core licensed banks operating on the high street,Lloyds TSB Bank, Lloyds TSB Private Banking and Lloyds TSB Scotland, plus two further licences for subsidiaries, Agricultural Mortgage Corporation Bank and Scottish Widows.
What happens if I have borrowed money from St. James's Place Bank?
Any money you owe (e.g. on your mortgage, loan or credit card) may be taken into consideration before any compensation is paid. If this happens, you will no longer owe the money deducted from your compensation.
Here's an example:
Jack has a £10,000 home loan. He also has £40,000 in his savings/bank account. The money Jack owes may be taken into account in working out how much compensation he should receive, and so he could receive £30,000 in compensation.
Where can I find out more about the Financial Services Compensation Scheme?
If you have any further questions about the FSCS, more information can be found on the Financial Services Authority website www.fsa.gov.uk.
* Halifax is Britain's largest savings provider - source: GfK FRS 6 months ending 06/08. Based on all respondents with savings accounts excluding Premium Bonds.
St. James's Place Bank is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered address: The Mound, Edinburgh, EH1 1YZ.
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