Are the guarantees to be trusted

caveman38

I know so far the government have reinbursed all losses to customers of failed banks. But seeing the falling share value of most of the big banks and the possibility of one or more of those banks going under.
Is it realistic that the government would be able to pay compensation on what would be a much greater scale if one of those banks folded and was not merged with another.

dkmax_2

caveman38 wrote: »

I know so far the government have reinbursed all losses to customers of failed banks. But seeing the falling share value of most of the big banks and the possibility of one or more of those banks going under.
Is it realistic that the government would be able to pay compensation on what would be a much greater scale if one of those banks folded and was not merged with another.

What really matters is not the amount you have in savings but what its purchasing power is. If your £100, say, is guaranteed and returned to you intact but all you can buy is a pint of bitter and a mars bar you might wonder what that guarantee really meant.

Protecting the amount is not as important as protecting what you can get with it - or indeed how much of it will be subsequently clawed back through direct, indirect or so-called stealth taxes.