Guarantees

garytilt

I recently invested in AKBANK on a 1 year bond because I understood they had the 50,000 GBP guarantee from the British Govt.

Today I gort a letter from AKBANK tellling me they were no longer guaranteed under this scheme. The good news is they are guaranteed by the Dutch scheme which is for a higher amount.

But it set me thinking, can schemes that are guarenteed when the investment is made lose/surrender the guarantee?

dunstonh

There is no Govt guarantee. The Govt underwrites the scheme in the form of loans if required but the scheme is not the Govt.

can schemes that are guarenteed when the investment is made lose/surrender the guarantee?

Investments have different compensation levels to deposits. It isnt clear from your post whether its a deposit or an investment. You use the phrases "bond" and "investment" which suggest an investment product and there are one year bonds available but in you probably mean "save" and "fixed term deposit" as that is a very common error. So I am going to assume the latter.

Yes, the protection offered by the FSCS can change. They may merge with another bank and decide to keep one licence rather than two individual ones. Or they may move to another juridstiction in the EU.

soulsaver

garytilt wrote: »

But it set me thinking, can schemes that are guarenteed when the investment is made lose/surrender the guarantee?

Yes - because the guarantee isn't being given by the institution in which you are placing your deposit and so doesn't form part of the 'contract'.

Dog's breakfast ...

BTW AKBank is a weirdo... cos it's a Turkish bank, with head offices in Holland.