Help or advice needed

Chloepad1

Hi everyone, I'm desperately worried and in need of advice if anyone can offer me some. My relative has £50k in a guaranteed capital bond from Natwest which is as you know, part of the RBOS group. I need to know whether if Natwest went under, would my relative be eligible for any kind of protection or reimbursement from the FSA compesation scheme, she is so worried and so am I and we don;t really know where to turn for help or advice. If anyone can offer us any information or help we would be very grateful. I am so worried because the news day after day just seems to get worse and we are both very frightened.

Reaper

There are 2 problems here. The first is that the guarantee the value would not fall was sometimes provided by American institutions some of which went bust, including Lehman Brothers. Surprisingly few of the accounts ever mentioned even in the small print that somebody else was providing the guarantee, which is unforgivable.

I can't abolutely tell you the answer but there is a Telegraph article on the subject you could read for starters. It seems the FSCS won't give a firm answer about whether investors are covered for the drop in value.

The second part is what would happen if the managers (RBS) went bust. In this case you are on firmer ground. I'm not totally sure which of the various compensation schemes this would fall under but I assume it is the Investment FSCS protection scheme which is 100% of first £30,000 and 90% of next £20,000.

If I got any of this wrong hopefully somebody will be along to correct me soon.

EDIT: On re-reading the telegraph article I see it says the compensation scheme it falls under is 100% of the first £2,000 – and 90% of everything after that.

Chloepad1

Thank you reaper
I have every intention of contacting the relevant department to see which compensation scheme it would fall under, I am hoping against hope that Natwest is not going to go under but I am extremely frightened by all of this turmoil.