FSCS - Interest and payout time.

anticlaus105

If a bank goes under and a claim is made through the financial services compensation scheme, how long would the payout be likely to take and would any interest be paid up to the payout date (and if so at what rate)?

E.g. I have a Halifax Reg Saver at 12% and 5K in the guaranteed reward saver at 6.25% for 1 year. If I claimed would these interest rates be honoured? Or would I simply receive the money in the accounts at time of collapse without any added interest (e.g. that accrued but not added yet)?

Sorry if this has been covered but I can't find an answer.

Oblivion

anticlaus105 wrote: »

If a bank goes under and a claim is made through the financial services compensation scheme, how long would the payout be likely to take and would any interest be paid up to the payout date (and if so at what rate)?

E.g. I have a Halifax Reg Saver at 12% and 5K in the guaranteed reward saver at 6.25% for 1 year. If I claimed would these interest rates be honoured? Or would I simply receive the money in the accounts at time of collapse without any added interest (e.g. that accrued but not added yet)?

Sorry if this has been covered but I can't find an answer.

My understanding of the FSCS guarantee is that you would be entitled to receive the amount deposited plus any interest due up to the date the bank or building society collapsed, subject to an overall ceiling of £35,000.

Dave.

YorkshireBoy

...so would the OP receive interest at 4.21% (for the reg saver) and 5% (for the GRS), ie the 'fall-back' rates...or the contracted rates they mention in the OP?

I appreciate we don't know, but speculation and guesswork welcome.

Oblivion

YorkshireBoy wrote: »

...so would the OP receive interest at 4.21% (for the reg saver) and 5% (for the GRS), ie the 'fall-back' rates...or the contracted rates they mention in the OP?

I appreciate we don't know, but speculation and guesswork welcome.

Interesting point. My 'speculation' would be that the originally contracted rates would be legally payable for the number of days the money was in use up to the date of the bank / building society closing business.

Dave