London Scottish bank folds - FSCS covers over £50k

Reaper

London Scottish Bank has gone into administration - story here

Interestingly the FSCS has said the government will "top up" full cover for those with more than £50k of savings, which seems to be normal behaviour now, at least for UK banks.


EDIT: Oops - just noticed the news had been mentioned already half way down this thread

robin_banks

I very much doubt anyone has £50k savingsm they are a sub prime lender after all.

evenasus

Why are we spreading savings to keep within the £50K FSCA limit?

KenC_3

evenasus wrote: »

Why are we spreading savings to keep within the £50K FSCA limit?

Because if one bank goes down you have access to all your other funds while waiting for the FSCS to repay and you will only be losing interest one one chunk of your money rather than all.

Having been through the Icesave saga with a substantial amount of money with them I can assure you that the period between hearing of the collapse and hearing about the full protection was one of the worst days of my life and not one I would want to go through again. The next two months have been pretty awfull as well, wondering when the money would come back while not gaining interest and watching fixed rates fall on a daily basis.

There is a lot to be said for peace of mind. Chancing all your cash with one entity in the hope that the government will not change policy would not provide that.

soulsaver

evenasus wrote: »

Why are we spreading savings to keep within the £50K FSCA limit?

In addition to the previous comments: Because the govt hasn't formalised the commitment; it's not ratified by europe; we are not sure if his tacit commitment is for UK banks only; we're not sure what the definition of a UK bank is (see below); Gordon has done one or two about turns in the past...

Santander listed on UK stock Market, no passport guarantee so is it UK bank or Spanish? If Spanish - is Abbey Spanish then? Is Alliance & Leicester?
Is ING a UK Bank with a Dutch owner? Or a Dutch bank trading in the UK? Etc.

ed123_2

... hit the jackpot again...after Icesave, Kaupthing, Heritable & Northern Rock.....put some in Anglo Irish.....now that's a bad omen!!! I think the key is if the bank is registered with the FSA then the FSCS is involved. Also if the EEA limit is below £50k they cover the balance.