FSCS coverage on merged Building Socities?

soulsaver

I've just opened an 3x5 (yr,%) Fixed Term Deposit (FTD) with the Barnsley BS. The BBS merged with the Yorkshire BS in Dec '08.

I've already got funds in a YBS FTD, so I've limited the deposit to total (BBS + YBS) under £50k.

On the BBS webby it suggests (NOT states clearly) that you may have seperate £50k cover if you already have an ac opened before Dec 08 with the Yorkie.

Thats not my understanding of the FSCS rule for merging BS, & it'd obviously be too much trouble for either the YBS or the BBS to provide a link to the appropriate area on the FSCS webby.

I phoned the YBS & girl said '...yep, you're covered up tp £50k with both... each... either'. I test her on it; she defers to her manager; her manager says 'Nope, its £50k in total', but can't explain what the webby says. :shrug:

I'd like to put more in the BBS (whilst its FTD is still open) without risk if I could, so I tried to check on the FSCS webby.

I can't find anything on coverage re BS mergers...? Anyone got a link to the right FSCS web pages?

EarthBoy

You only have protection up to £50,000 because your account with the Barnsley was opened after the merger. You are only entitled to two separate protection levels if you had funds invested in both building societies before they merged.

http://www.moneymadeclear.fsa.gov.uk/news/product/bs_merger_compensation.html

soulsaver

EarthBoy wrote: »

You only have protection up to £50,000 because your account with the Barnsley was opened after the merger. You are only entitled to two separate protection levels if you had funds invested in both building societies before they merged.

http://www.moneymadeclear.fsa.gov.uk/news/product/bs_merger_compensation.html

Yup that's my understanding too. But the key bit is that if I had an ac with the Barnsley with just a pound in it at Dec 08, I could have added the FTD up to 50k now with impunity, even tho' I've got additional funds in the Yorkie! That was the bit that had escaped me; I thought any new money (post merger) that took you over 50k in total wasn't covered, but clearly the link confirms the Barnsley's web example. Thanks. :thumb:

Barnsley_Building_Society_company_representative

Hi,
This is Nick from Barnsley Building Society e-Commerce team. I'm sorry that you have had two conflicting views. Hopefully I can clear the matter up for you. I can confirm that as you opened your BBS account after the merger of the Barnsley and the Yorkshire, you have a total FSCS cover of £50k and not the higher £100k. The £100k cover that was initially referred to relates to members that had a savings account with the Barnsley on 30 December 2008 (prior to completion of the merger which took place on 31 December 2008) and who were also a savings member with the Yorkshire on that date (30 December 2008).
I hope that helps.

Nick