FSA proposes £500,000 savings protection for some

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  • *MF**MF* Forumite
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    This would really screw the building societies and future mortgage lending!

    And how they would moan! [They've alreay got a big gripe against NSI and Alan Sugar - and who can blame them?]

    Not really ... there are specific sources involved and time limits - outwith those specifics and those time limits - the funds become available - as suits the individual, within whatever levels of protection then exist for Banks or Building Societies.

    NS&I would only hold the funds for the periods involved (or shorter) - but the flow of money into NS&I, say from house sales or inheritance, would be relatively constant over time.

    Extract:

    The plan is to increase that protection to £500,000 for those with cash from an inheritance, divorce, redundancy, insurance pay-out, property sale or pension lump-sum.

    Savers would have their cash protected for up to six months, though it will be a strict condition that they came into that cash due to at least one of the six reasons above.

    In addition, if someone gets compensation following a personal injury, the amount of protection will be unlimited and will last for 18 months.
    If many little people, in many little places, do many little things,
    they can change the face of the world.

    - African proverb -
  • TrollfeverTrollfever Forumite
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    Is the FSA Forward Planning Department trying to tell us something?
  • poppysarahpoppysarah Forumite
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    So ify ou earn the money you get no extra protection?
  • *MF**MF* Forumite
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    poppysarah wrote: »
    So ify ou earn the money you get no extra protection?

    Nope .. it looks like only the categories mentioned.

    So ... looks like winnng the Lottery is not all it's cut out to be.
    Just more worries over where to stash the loot! :D
    If many little people, in many little places, do many little things,
    they can change the face of the world.

    - African proverb -
  • dunstonhdunstonh Forumite
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    Trollfever wrote: »
    Is the FSA Forward Planning Department trying to tell us something?

    No its the FSA shut the stable door after the horse has bolted department deciding what to do next.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dunstonh wrote: »
    Talk about making it more confusing.

    As for future costs mentioned above, I can tell you all financial services companies, even those not involved in there areas, are going to be hit big time and that means passing the costs on. That will mean higher charges whether implicit or explicit (savings accounts are implicit and the charge is hidden as the net interest charge).

    Your dead right there !!
    When the financial services act came into being who had to finance the cost of compliance and regulation !! not the share holders but the policyholders and then they wonder why returns are so poor as this has been a contributing factor
  • DiggerUKDiggerUK Forumite
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    If it is a proposal from the FSA be very afraid.
    These are the people who have been regulating the banks.

    This would steer holders of cash towards IFA sharks, who are regulated by, guess who? The FSA !

    Why won't the government guarantee your money anyway?
    If it is safe why does it need guaranteeing?
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