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£35k protection query

If one has a fixed term bond with one firm and then it merges with or gets taken over with another where you have some more fixed term savings, does the combined sole £35k limit apply immediately? What I am asking is whether one of the fixed term bonds should be cashed in, potentially with penalties, in order to ensure that the money can be placed elsewhere with a £35k limit again?

Comments

  • dunstonh
    dunstonh Posts: 121,294 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    does the combined sole £35k limit apply immediately?

    Maybe, maybe not. It will depend on the business model and future plans. Typically, they will continue running on two licences for a while until they have made the decisions.
    What I am asking is whether one of the fixed term bonds should be cashed in, potentially with penalties, in order to ensure that the money can be placed elsewhere with a £35k limit again?

    paying penalties to get out because of the £35k FSCS limit is paranoid in the extreme.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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