NatWest just told me savings bonds covered by extra 48K in addition to the FSCS 50K

Lokolo

Squibbler wrote: »

This is NatWest not Nationwide that i am talking about.

Ok so you are talking about a GEB

http://www.natwest.com/personal/investments/g1/investments-for-everyone/fixed-term-investments/guaranteed-bonds.ashx#tabs=section1

rb10

Squibbler wrote: »

It's certainly the first i have heard about it. I find the whole definition of investment & savings very confusing. Isn't any savings account with interest an investment?

Natwest seem to make the split but not Nationwide and the FSCS say it is unusual to do so.

Under their definitions of 'savings account' and 'investment', they are quite different things, which is why one is covered up to £50k and the other to £48k.

Taking Nationwide as an example, everything that you see on their savings page is covered up to £50k.

However, a quite separate limit of £48k applies to everything on their investments page. But be aware that everything on the investments page is not a normal 'savings account paying x.xx% interest'. They are often stock market linked, or something like that, and you're not always guaranteed to even get your capital back.

Lokolo

YorkshireBoy wrote: »

Are you sure they're not talking about Guaranteed Equity Bonds (GEBs) or the like?

Merci.

I think he/she is:

http://www.natwest.com/personal/investments/g1/investments-for-everyone/fixed-term-investments/guaranteed-bonds.ashx#tabs=section1

Squibbler

This is the Natwest account I was querying with them

http://www.natwest.com/personal/savings/g3/medium-term/3yr-savings-bond.ashx

no risk to capital...

I am confused.

I just called my branch again & he confirmed this again.

Comes under 48K, NO risk to capital.

Squibbler

rb10 wrote: »

However, a quite separate limit of £48k applies to everything on their investments page. But be aware that everything on the investments page is not a normal 'savings account paying x.xx% interest'. They are often stock market linked, or something like that, and you're not always guaranteed to even get your capital back.

Thanks Yes I get that, but Natwest seem to have some deviations from that rule.

Lokolo

Squibbler wrote: »

This is the Natwest account I was querying with them

http://www.natwest.com/personal/savings/g3/medium-term/3yr-savings-bond.ashx

no risk to capital...

I am confused.

I just called my branch again & he confirmed this again.

Comes under 48K, NO risk to capital.

I personally believe he is lying if you are talking about that account.

Squibbler

Lokolo wrote: »

I personally believe he is lying if you are talking about that account.

He seemed very confident of this. Seems weird that the Natwest H/Office are telling me the same too.

Squibbler

I guess I will stay within the 50 K to be on the safe side though. I wish they would raise that stupid 50k limit - aren't they supposed to be doing so across Europe soon?

YorkshireBoy

Lokolo wrote: »

Merci.

Ce n'est pas un problème

dunstonh

http://www.natwest.com/personal/savings/g3/medium-term/3yr-savings-bond.ashx

Good grief. That webpage is full of terminology errors. No wonder the bank staff cant get it right.

The product is a fixed term deposit yet they use the word "bond. They flit between using savings and investment in different sections.

It reads as a cash based account. A traditional fixed term deposit and that would put it under the deposits part of the FSCS protection. It does not fall under the investment part based on what is on their website.

Natwest do issue some structured products (guaranteed equity bonds) which do fall under the investment part of the FSCS (once they get to the strike date) but this isnt one of those.