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Recent Bank Takeovers

The complicated situation of who owns who in the banking sector has been caused by banks merging and launching a series of takeovers, leading to changes in FSA registrations. The market is constantly changing and it is therefore crucial for savers to follow events closely to see if their bank or building society has been affected, or is the subject of a merger/takeover.

HBOS/Lloyds

The deal to takeover Lloyds by HBOS has not yet been fully finalised, meaning the banks remain separate institutions. Therefore savers with deposits in both receive two lots of £50,000 protection.

However, it is important to note that there a number of subsidiaries that make up HBOS, including Halifax, Intelligent Finance and the AA. Savers with multiple accounts in these are entitled to just lot of £50,000 cover as they count as one institution.

Abbey, Alliance & Leicester and Bradford & Bingley

Abbey, Alliance & Leicester and the savings business of Bradford & Bingley have been bought out by the Spanish banking giant Santander.

There are reportedly no plans to change' either of FSA registrations for Abbey and Alliance and Leicester, meaning both remain as separate institutions and savers are protected up to £50,000 in each.

Bradford and Bingley has merged with the Abbey as a result of its savings arm being taken over by Santander. The move means only one lot of £50,000 protection applies for savers that have a B&B (or Asda) and an Abbey (or Cahoot) account.

Nationwide/Derbyshire BS/Cheshire BS

UK building society Nationwide has added Derbyshire and Cheshire Building Societies to its portfolio. Once the mergers have been completed (scheduled for December 2008) they will each move onto the same licence and become one FSA registered institution, meaning savers will only get one lot of £50,000 savings protection between the three of them.