FSCS Compensation Calculations

gbjbasdw

I finally got my cheque from the FSCS on Saturday but they don't seem to be very good at using a calculator !

I invested £10,000 fiexed at 6.7% for 1 year with Icesave but got a cheque for £10,620.03 - £49.97 less than I was expecting.

My father was also paid out about £50 short - coincidence ???

I'd be interested to hear from anyone else who thinks they have been shortchanged by the FSCS.

Regards

Steve

nzseries1

Did you take into consideration the mandatory 20% tax on your savings?

Robert_Sterling_3

Evidently not.
Well done FSA .
OP could have lost the £10,000
Got all their money back plus interest. :j :j :j

nzseries1

If you did take the tax into consideration, perhaps you didn't account for the fact that the FSCS may not have paid out for the full 1 year fixed term, but only paid you interest between when you opened your account and when the bank went bust.

Paul_Herring

nzseries1 wrote: »

If you did take the tax into consideration, perhaps you didn't account for the fact that the FSCS may not have paid out for the full 1 year fixed term, but only paid you interest between when you opened your account and when the bank went bust.

If you opted to maintain the FRSB until maturity, the FSC should be paying interest over the full term.

If you opted to close the FRSB early, you only get interest until last October.

Robinhood65

gbjbasdw wrote: »

I finally got my cheque from the FSCS on Saturday but they don't seem to be very good at using a calculator !

I invested £10,000 fiexed at 6.7% for 1 year with Icesave but got a cheque for £10,620.03 - £49.97 less than I was expecting.

My father was also paid out about £50 short - coincidence ???

I'd be interested to hear from anyone else who thinks they have been shortchanged by the FSCS.

Regards

Steve

I received a cheque 6 weeks ago which was nearly £1,000 short. I returned it immediately and have contacted FSCS several times. They initially promised to get it sorted by the end of Feb. Now will not give any date for a response. Fixed rate matured in December at 6.5%. FSCS appears to be having serious difficulties which is very worrying.

Mikeyorks

Robinhood65 wrote: »

FSCS appears to be having serious difficulties which is very worrying.

..... albeit not quite as serious as the difficulties they are attempting to resolve?

And banking the cheque and then picking up the issue would have made more sense.

jem16

gbjbasdw wrote: »

I invested £10,000 fiexed at 6.7% for 1 year with Icesave but got a cheque for £10,620.03 - £49.97 less than I was expecting.

Well done!

I would have expected you to get £10,536 - gross interest of £670 minus 20% tax which is £134 making net interest £536.

What's the problem?

isofa

jem16 wrote: »

Well done!

I would have expected you to get £10,536 - gross interest of £670 minus 20% tax which is £134 making net interest £536.

What's the problem?

A 6.7% rate is 5.36% net.

Jem is spot on - Gross it would have been £10670 after 12 months, net in total this would be £10536. So how the OP gbjbasdw ended up with £10620.03 is anyones guess...

It appears they have made a mistake in gbjbasdw's favour...

PurpleBox

What are other peoples experences here?

I am still hoping that I will receive my money soon after it's maturity date in early June - and that it will be for the correct amount.

PurpleBox.

charlieboycat

PurpleBox wrote: »

What are other peoples experences here?

A 12 month 6.85% fixed London & Scottish bond matured on 21st January, cheque from FSCS dated 5th February was received/banked 9th February.

The interest (both gross and net of tax) was spot on. Extremely so. 2008 was a leap year and we got 366 days interest - calculated 346/366 @ 6.85% + 20/365 @ 6.85%.

The end result being 25 pence (net) more than a straight 6.85% of the initial deposit !!! So the FSCS are obviously capable of exactitude when they want to.