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Icesave: Compensation for fixed rate bond holders
Ratatosk
Posts: 14 Forumite
I found this link this morning which suggests that the compensation process for fixed rate bond holders will be different to that for easy access account holders. Can anybody with more financial knowledge confirm whether or not this is correct.
http://www.fool.co.uk/news/your-money/savings/2008/10/03/is-it-safe-to-lock-your-savings-away.aspx
Quote:
"In relation to fixed rate bonds, if the bank in question goes bust, the FSCS will effectively take over your bond for the remaining term. If no access to your money is permitted at any time before maturity, you will need to wait to the end of the term before you can make a claim under the FSCS for compensation. You will then be entitled to claim for the capital deposited in your bond plus the interest you would have earned over the term up to the new maximum of £50,000."
I was only searching in the first place because someone scared the !!!!!! out of me by saying that bonds may be considered as investments rather than savings and may not be covered at all. Thankfully they appear to have been misinformed.
http://www.fool.co.uk/news/your-money/savings/2008/10/03/is-it-safe-to-lock-your-savings-away.aspx
Quote:
"In relation to fixed rate bonds, if the bank in question goes bust, the FSCS will effectively take over your bond for the remaining term. If no access to your money is permitted at any time before maturity, you will need to wait to the end of the term before you can make a claim under the FSCS for compensation. You will then be entitled to claim for the capital deposited in your bond plus the interest you would have earned over the term up to the new maximum of £50,000."
I was only searching in the first place because someone scared the !!!!!! out of me by saying that bonds may be considered as investments rather than savings and may not be covered at all. Thankfully they appear to have been misinformed.
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