Passport Scheme - Banks to Avoid - Includes ING

Alan_T_2

Playing Devil's Advocate here.... I wonder if our UK banks would be in just as much trouble now if the balances sitting in Overseas Banks were sitting on the balance sheets here. Not saying that it would have saved Northern Rock or Bradford & Bingley as their models were entirely unrealistic... but I wonder if HBOS or RBS would have been in as much of a pickle if they had a higher percentage of lending coming from their own deposits.

MKUX3

i have a bond with bank of cyprus - due to finish july 09.

am i allowed to close it completely just now???

Baldur

MKUX3 wrote: »

i have a bond with bank of cyprus - due to finish july 09.

am i allowed to close it completely just now???

What do your terms & conditions say?

Their website suggests not http://www.bankofcyprus.co.uk/main.asp?id=6184

Withdrawals Withdrawals are not permitted from a Fixed Deposit before the end of the term.

Debt_Free_Chick

Interestingly, the FSCS state that (where firms have agreed to the top-up)

A bank established in another EEA state should be a member of that state's compensation scheme, which is designed to protect depositors in that EEA country, and those with accounts at branches in other EEA countries. Where the bank's home state scheme provides a lower limit of compensation than FSCS (i.e. less than 100% of £50,000), or the scope of protection is less than FSCS's, the bank may choose to join FSCS to 'top up' the level of protection offered by the home state scheme.

In the event of a failure of one of these banks, there would be a two step process as the home state scheme would have lead responsibility for claims, and would be responsible for paying the first part of any compensation. FSCS is only responsible for paying compensation for the topped up element to £50,000 on deposits with the UK branch. FSCS would, wherever possible, try to assist claimants in their dealings with the home state scheme (for example, by putting them in contact with the home state scheme, or helping them understand the process that the home state scheme will follow). FSCS would then deal with any 'top up' claims.


Now .... I interpret that as "if the home compensation pays nothing, we'll top up to £50k".

Baldur

Debt_Free_Chick wrote: »

Now .... I interpret that as "if the home compensation pays nothing, we'll top up to £50k".

Dream on..............

Seajays

Debt_Free_Chick wrote: »

Now .... I interpret that as "if the home compensation pays nothing, we'll top up to £50k".

A lot of things have changed in the last 48hrs. See this faq for more info:

http://forums.moneysavingexpert.com/showthread.html?t=1202009

Debt_Free_Chick

I don't believe for one minute that the FSCS would top-up the full amount if the other Country's scheme failed to pay out ..... but the statement on the website is pretty misleading.

A quick look at the FSA Handbook suggests that the FSCS deducts the liability of the other Country's scheme i.e. the amount they are supposed to pay out

Former_MSE_Dan

Hi folks,

to clear this up, its probably easiest to post the section thats been in our article for around 6 months. Essentially, the list posted by the OP is indeed the list of banks that have decided to top up their home scheme compensation with money from the UK scheme, so that together it equals £50k.

Finding the banks that haven't topped up is harder, and explained below. Very few of these offer retail deposit accounts in the UK though

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One area deserves a theoretical warning though; it's possible for a European bank to operate in the UK only using its home compensation scheme. Depending on the amount covered under that scheme, your savings may be less protected than the £50,000 the UK's FSCS provides.
In this situation, the foreign bank will not be FSA-regulated, and no banks currently mentioned on this site work that way; however if you find any foreign banks not mentioned here, be vigilant; ask it how its compensation works.
Check out banks on the FSA website

To check out a banks status, click through to the bank listings on the FSA website, select the most recent date, and you'll get a huge PDF document. All banks in the 'Banks incorporated in the United Kingdom' category are fully covered by the FSCS, while institutions listed under the catchy title of 'Banks incorporated outside the EEA authorised to accept deposits through a branch in the UK' only have their home compensation scheme, unless they are on the FSCS top up list.
Do note with Kaupthing, there are two listings one for "Kaupthing Bank hf" which has the passport exemption, and then thefully UK regulated “Kaupthing Singer & Friedlander” which is what covers the "Kaupthing Edge" account (part of the Top Savings article) meaning the savings account has the full UK protection.

MKUX3

just a small question

have i full protection with Heritable Bank. i have a fixed bond and am getting confuased with it all..

Former_MSE_Dan

Heritable bank savings have transferred to ING, which is fully operational and you are protected up to around £78,000 in the Dutch scheme, should anything ever happen to ING