FSCS £50,000 Guarantee

oshoshitzu

Does the FSCS £50,000 guarantee include interest?

If I deposited £47,000 and there were a problem with the bank, would I get £47,000 back plus the interest it had earned upto £50,000?


THANKS

Baldur

Yes, the limit in total (capital & interest) is up to £50,000.

evenasus

Hmm, good question. I would hope so, as it states up to £50,000.

Silly me though, I've moved £50,000 into two banks/building societies without considering the interest. :rolleyes: Also got over the limit :rolleyes: :rolleyes: in another building society but am moving money as accounts mature.

JayTee99_2

This is a good question,
You're asking "WILL interest be paid if your amount is less than the 50k"

it does seem that Landsbanki and Kaupthing have indeed been treated differently, so the answer may well be 'Not in all cases, even though your amount is below 50k'

it might have been clearer if you had used a figure of, say 30k
would you just get the 30k back, or the 30k plus interest?

but i think the answer really does depend on which bank you are referring to!

interesting to see others' views on this

Baldur

JayTee99 wrote: »

This is a good question,
You're asking "WILL interest be paid if your amount is less than the 50k"

it does seem that Landsbanki and Kaupthing have indeed been treated differently, so the answer may well be 'Not in all cases, even though your amount is below 50k'

Afraid that I don't follow your logic on either of those statements. The FSCS remit is to pay up to £50,000 of a depositor's claim, including interest up to the date of default or, in the case of fixed deposits, the date of maturity.

I have certainly been paid interest on a sum of a couple of hundred pounds in one of my Icesave accounts, as part of the FSCS claim.

evenasus

JayTee99 wrote: »

it does seem that Landsbanki and Kaupthing have indeed been treated differently

I was thinking British banks/building societies which are covered by the FSCS.

Were Landsbanki & Kaupthing originally covered by the scheme?

Or were savers rescued by Government intervention? Didn't have money (nor would ever) in any foreign banks, so not really sure.

JayTee99_2

i had seen the odd post claiming that Kaupthing and Icesave were being treated differently as regards to interest.
if you say that is incorrect, then thanks for the clarification,


But if we're talking about one of our mainstream banks here in UK, then i really don't think the OP needs to be concerned about that

Baldur

evenasus wrote: »

I was thinking British banks/building societies which are covered by the FSCS.

Were Landsbanki & Kaupthing originally covered by the scheme?

Kaupthing was fully covered by the FSCS, Icesave was covered by the FSCS for the amount above the €20,000 (supposedly) covered by the Icelandic scheme up to £50,000.

ed123_2

...another point may be does this relate to gross interest or net interest eg if your had £47.5k at 6%=£47.5k+ £2850 gross=£50350pa ie £350 over the limit (net= £47.5k+£2280=£49780 ie £220 below the limit...?

evenasus

Thanks for the clarification Baldur.

JayTee99_2

evenasus wrote: »

I was thinking British banks/building societies which are covered by the FSCS.

Were Landsbanki & Kaupthing originally covered by the scheme?

Or were savers rescued by Government intervention? Didn't have money (nor would ever) in any foreign banks, so not really sure.

True, but we seem to have gone beyond the basic guarantees of the FSCS scheme with implication of wider coverage,
although Alastair Darling is slightly ambiguous, giving mixed messages with his 'foreign banks' comments