MSE News: Boost for savers as deposit guarantee to rocket

ESKIMO

This must come as much welcome news to some.

I still have my reservations though about the poor interest rates (sorry diabolical) atm.

Has SLOW, LINGERING, DRAWN-OUT RECOVERY plastered all over it.

'Save now, tie your hard-earned savings away. Allow the banks to make megga bucks on your deposits and pass diddly-squat back to you.'

Time for a boycot i think...

opinions4u

Primrose wrote: »

And I would also like to see all savings institutions with separate brand names forced to have their own licence/registration so that institutuions like Halifax, Birmingham Midshires, AA etc, all have separate licences rather than being lumped together under the same licence registrations. The umbrella concept is too confusing for many savers, many of whom have absolutely no idea which organisations are linked together.

I bet the person who came up with the cost saving concept of combining the HBOS banking licences costs that company £billions in savings balances when they were on the ropes!

I'm sure they'd prefer to have a licence by brand too, without having to pay the rather excessive costs related to maintaining the different registrations.

Old_Wrinkly

juicyjude wrote: »

Is this increase definately going to go ahead because if it is it will make a difference as to where I stick my money from my close A & L online saver 5 account. Or is it a case of wait and see if they feel like it or not?? Does anyone know the answer to this one, thanks

As posted already (with links), yes this increase is definitely going to go ahead.
It is in an EU Directive
http://ec.europa.eu/internal_market/bank/docs/guarantee/200914_en.pdf
and thus has to be complied with - by 31 December 2010 (as regards this provision).
The figure in the directive is 100,000 euros. The conversion to sterling can vary over time, as the currencies fluctuate, but will probably start off at around £85,000. I'm not sure whether the EU/FSCS have agreed a figure as yet - I rather suspect (since different figures are still being quoted) that they haven't.

drb01

Do you have any idea yet how the FX will be treated? If GBP/EUR goes back to 1.7 then it makes a big difference!

neil324

Bit stupid this is, why put a Euro amount on it, you need to keep track off the exchange rate to be totally covered, that's if your lucky enough to get close to the limit of course.

Loughton_Monkey

I feel relatively neutral about the increase. Yes, it will make life easier as I have had to spread mine out a bit.

But my main worry is this. If we get to the stage of another "collapse" where there is a universal meltdown in banks, then I think getting our cash back might be the least of our problems!

However, it's probably on the cards that one or other of the more obscure, foreign banks might just have an "accident", in which case the higher limit might be helpful - so we can put more into some of these very good offers (like recent ones from Baroda etc.)

drb01

neil324 wrote: »

Bit stupid this is, why put a Euro amount on it, you need to keep track off the exchange rate to be totally covered, that's if your lucky enough to get close to the limit of course.

the problem is when you have cash in say a 5yr account. If GBP strengthens are you still covered? I suspect not..