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Fixed Rate Bonds
JAllen_2
Posts: 10 Forumite
From what I understand Fixed Rate Bonds offered by UK banks and building societies provide the same level of FSCS protection as ordinary savings accounts (i.e. £50000 protection). Is this correct?
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Comments
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Correct.
However, if ownership of the bank gets transferred during the fixed term, the new bank may not be FSCS registered. It's unlikely, but it happened to me.
In my case, I got a Kaupthing Edge 1 year fixed bond in July 2008. KE was fully covered up to the £50,000 limit. However, in October 2008 KE was bought by ING Direct. Now my money is with ING Direct, which does NOT have the same level of protection, however I can't withdraw it without penalty until July 2009.You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.0 -
FRSB's are just plain savings accounts with a couple of restrictions on them; they're nothing out of the ordinary, so, yes, they're covered.Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
From what I understand Fixed Rate Bonds offered by UK banks and building societies provide the same level of FSCS protection as ordinary savings accounts (i.e. £50000 protection). Is this correct?
Essentially, yes, although there's nothing to stop a bank withdrawing from the FSCS scheme during the period of your bond, leaving you unprotected.0 -
MarkFromMullion wrote: »Essentially, yes, although there's nothing to stop a bank withdrawing from the FSCS scheme during the period of your bond, leaving you unprotected.
Rubbish. The FSA wouldn't and have never allowed a regulated bank/branch to withdraw from the FSCS scheme and leave depositors funds 'unprotected'. The mergers and takeovers have always resulted in at least the same level of protection and often more, Kaupthing & Heritable.0 -
Correct.
However, if ownership of the bank gets transferred during the fixed term, the new bank may not be FSCS registered. It's unlikely, but it happened to me.
In my case, I got a Kaupthing Edge 1 year fixed bond in July 2008. KE was fully covered up to the £50,000 limit. However, in October 2008 KE was bought by ING Direct. Now my money is with ING Direct, which does NOT have the same level of protection, however I can't withdraw it without penalty until July 2009.
ING direct doesn't have the same level of protection, it has MORE. (€100k)
And as the Dutch economy appears to one of the more solid Euro ones I suspect that you're safer than ina UK FSCS bank..0 -
And as the Dutch economy appears to one of the more solid Euro ones I suspect that you're safer than ina UK FSCS bank..
This is a matter of opinion. The FSCS paid out Icesave when it did not have to, and not just £50,000... ALL deposits. I was most unhappy when I realised I would be losing the FSCS protection on my fixed term account. That was what made me choose Kaupthing Edge in the first place over Icesave.You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.0 -
ING direct doesn't have the same level of protection, it has MORE. (€100k)
And as the Dutch economy appears to one of the more solid Euro ones I suspect that you're safer than ina UK FSCS bank..
That sounds rather familiar TBH! I can remember reading something similar when I was persuaded to place my savings with Icesave, Icesave implied that my savings would be safer because they operated the passport scheme which was backed by the reliable Icelantic banking system!0 -
That sounds rather familiar TBH! I can remember reading something similar when I was persuaded to place my savings with Icesave, Icesave implied that my savings would be safer because they operated the passport scheme which was backed by the reliable Icelantic banking system!
I guess Icesave would say that, wouldn't they
Call me simple if you want, but I prefer to have the compensation from the government of the country I live in, rather than the compensation from the government of a country I know nothing about.You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.0 -
I guess Icesave would say that, wouldn't they
Call me simple if you want, but I prefer to have the compensation from the government of the country I live in, rather than the compensation from the government of a country I know nothing about.
I wonder how many Icelandic folk have said that in the past and now wonder why they had such faith in their own financial system.0
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