Would you risk > £50K in a a savings account?

baby_boomer

It annoys me that the government is doggedly determined to be able to say that no-one has lost money on their watch - whatever the circumstances and whatever the consequences.

I'd prefer them to make a statement saying that in future there will be no help above the FSCS limit of £50K.

This would increase the chance of good institutions being rewarded with more savings for being strong & sound - which will help us emerge from the crisis in the medium term.

evenasus

baby_boomer wrote: »

I'd prefer them to make a statement saying that in future there will be no help above the FSCS limit of £50K.

This would increase the chance of good institutions being rewarded with more savings for being strong & sound - which will help us emerge from the crisis in the medium term.

So would I!
Just as the failed financial institutions had 'gambled with finances', so to speak.
So are savers who risk amounts over the FSCS limit of £50K.

I know at the moment, I'm risking £15K for the next few weeks. But that can't be helped as it's in a 3-year (soon to mature) members bond. Well, I suppose it can...as I could have closed it and just forfeit 90 days interest. More laziness on my part really.
Solely my fault if things went wrong and I lost it.

claire07

I'd prefer to know one way or the other. I'm in the Bank of Scotland Instant Reward and teetering near the 50k. I'm so tempted to go over but keep holding back but the more I hear about the government guaranteeing all savings the more I'm tempted. I'm just too cautious to make the decision but I'd like it taken out of my hands!

evenasus

claire07 wrote: »

I'm in the Bank of Scotland Instant Reward and teetering near the 50k.

I too have the same account with £50K in it. I realise that if anthing did go wrong, then it would mean I may not get any interest. But at least I'd get my £50K back.
Same with the Coventry over 50 account I opened last November @ 6.25% fixed.
It's a great account as there are no penalties for withdrawals and you can add to without restrictions.
I won't though, put more in than the £50K.

claire07

That's why I'm tempted. I had the Coventry account from March last year but it's guaranteed rate is up 31st March. It's been great having the two accounts to add too when rates dropped.

soulsaver

IMHO the right solution would be for our gov't to get in line with other European compensation schemes and increase the guarantee. Most are €100000 - which is close on £90k. Make a commitment to pay within say 4 weeks, clearly state who is entitled (including definitions as necessary ie 'small' business entitlement) protection for FTBs in the event of mergers, and then clearly state no comp above & beyond those limits.

claire07

Excellent suggestions. What do you think are the chances?