Should I worry about my UK bank deposits?

Readers Question: Should I worry about my UK bank deposits?
No, I think it is fine. The government couldn’t allow a bank to go under. Although they dithered over Northern Rock, the fact they did ultimately nationalise it shows they would not allow savers to lose their money causing a collapse in confidence.

The government currently guarantees all savings upto £50,000. But, because of the response of Germany and Ireland, the UK government is being pressured to raise the limit as well. see: Guaranteeing bank deposits – Game Theory for the Europeans

I would have more concerns if I was a shareholder in a UK bank. It looks pretty bleak on the stockmarket.

Building societies generally have better balance sheets because they didn’t get involved in the securitised mortgage deposits.

Safety of Building societies