Fscs

Khelnu

The FSCS is due to increase to Euro 100,000 on 31 December.I wonder if this will cause a leaning to increases in interest rates to attract those who at present keep their savings to the £50,000 level ?

ESKIMO

Any chance of including a/the referenc/source of info bud? Regards.

goRt

It's at the end of question 4 here - EU law from 1/Jan/11:j:

http://www.fscs.org.uk/what-we-cover/questions-and-answers/qas-about-deposits/

ESKIMO

Thanks goRt.

goRt

No worries, only just found it myself

ESKIMO

I know that the FSCS limit is increasing from £50,000 to £83k in December. (Maybe that's the E100,000?)

I'll check.

ESKIMO

FYI:

http://www.fsa.gov.uk

http://www.fsa.gov.uk/pages/consumerinformation/compensation/index.shtml

If a UK financial services firm is unable, or likely to be unable, to pay claims against it you may be able to get compensation from the Financial Services Compensation Scheme (FSCS). The service is free to customers and is independent from financial services firms. It is funded by levies charged to the financial services industry.
Where the FSCS fits in

The FSCS covers business conducted by firms authorised by us. You can check if a firm is authorised by us on Check our Register.
If you have a complaint or claim against an authorised firm that is still trading, you should contact that firm directly – see If things go wrong.
If you have a claim against a firm that has stopped trading you should first try to contact the firm to see if it can pay your claim. If the firm cannot pay claims against it, the FSCS may be able to help.
What the FSCS covers

The FSCS covers:
· deposits, such as bank accounts;
· insurance policies;
· general insurance advice and arranging (for business on or after 14 January 2005);
· connected travel insurance – where the policy is sold by travel firms and holiday providers (for business on or after 1 January 2009);
· investment business; and
· home finance (eg mortgage) advice and arranging (for business on or after 31 October 2004).
For further information see the FSCS booklet A guide to the work of the Financial Services Compensation Scheme on the FSCS website – see Related links.
Who the FSCS covers

The FSCS can help:
· private individuals;
· some small businesses; and
· all policyholders of compulsory insurance policies.
Compensation limits

Different rules and compensation limits apply depending on what the claim is for. From 1 January 2010 certain limits have been changed. The FSCS cannot always cover 100% of your loss and can only pay compensation for financial loss. If you owe money to the failed firm (for example loans, mortgage or credit card debts), these will be taken into account before any compensation is paid. The limits are for one person’s claim against one authorised firm for each type of claim. So you are only covered up to the limit once for each type of claim against a particular firm, no matter how many products are affected. For more details see the FSCS website.

UK banking and savings groups

Many deposit-taking firms operate using different trading names which are not separately authorised by us. You may find that you have deposits with different banks but they are actually linked and operate under one single authorisation. This would mean that you are only covered up to a total of £50,000.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/054.shtml

I love 'fishing'! Hope you enjoy my 'catch'.

ESKIMO

Ahh ha! Found it folks! Yup i was right it was the £83k/E100k equivalent. Silly me.

Found it on MSE (of all places!)

http://www.moneysavingexpert.com/news/banking/2010/09/boost-to-savings-protection-revealed-by-fscs

http://www.moneysavingexpert.com/savings/safe-savings

Just goes to show what a little bit of digging (sorry 'fishing') can do!

Hope this helps every one.

Good-deed of the day - done. Problem solved! :T

Regards.

gt94sss2

Khelnu wrote: »

The FSCS is due to increase to Euro 100,000 on 31 December.I wonder if this will cause a leaning to increases in interest rates to attract those who at present keep their savings to the £50,000 level ?

If I was running a bank I would actually lower the interest rates paid between £50-£85k (the new limit).. if it was higher than what was being paid to customers who had £50k.

After all, there is now no need to 'compensate' those customers for the extra risk they were talking.

The only exception to this is if I was actively seeking the more liquid customers.

Regards
Sunil

pqrdef

Banks are keen to increase their customer bases, but I see no sign that they're much interested in attracting existing customers to deposit more money. Even if you've got £100K on deposit at a silly interest rate, they'll probably hassle you to buy an investment product, so they lose the funds but collect the commission.

goRt

The best place to read about this is the FSCS news page - 21/Sept - we're not moving the limit, 22/Sept, we're moving!!!:
http://www.fscs.org.uk/news/