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Savings protection limit increases from £50,000 to £85,000 31/12/10

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Comments

  • LydiaJ
    LydiaJ Posts: 8,083 Forumite
    Part of the Furniture Combo Breaker Mortgage-free Glee!
    Well, it's just in time to make my life more convenient. My life insurance money is in £50k chunks in various accounts, but for transferring it to my conveyancing solicitor it will be much easier to have it in £85k chunks.
    Do you know anyone who's bereaved? Point them to https://www.AtaLoss.org which does for bereavement support what MSE does for financial services, providing links to support organisations relevant to the circumstances of the loss & the local area. (Link permitted by forum team)
    Tyre performance in the wet deteriorates rapidly below about 3mm tread - change yours when they get dangerous, not just when they are nearly illegal (1.6mm).
    Oh, and wear your seatbelt. My kids are only alive because they were wearing theirs when somebody else was driving in wet weather with worn tyres.
    :)
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    iinvestor wrote: »
    all savers money in British Banks (with a British banking licence) should be 100% guaranteed by the government.

    if a bank goes under and you have a million pound mortgage will the bank cancel it? NO. so why are savers penalised.

    A strong domestic banking system is the cornerstone of an economy.

    Who's going to pay for the guarantee?

    If the taxpayer pays, effectively the poor without children and the middle class subsidise the rich.
  • lemonjelly
    lemonjelly Posts: 8,014 Forumite
    1,000 Posts Combo Breaker Mortgage-free Glee!
    It's not quite right this headline though is it?

    The actual level is 100,000 euros, which currently equates to around £85k, which is the figure being bandied about at the mo as being most convenient.

    But my understanding is that the protection level is in line with 100,000 euros.

    Does this mean it will fluctuate?

    How will this be managed?
    It's getting harder & harder to keep the government in the manner to which they have become accustomed.
  • ManAtHome
    ManAtHome Posts: 8,512 Forumite
    Part of the Furniture Combo Breaker
    The limit is £85k - picked as an 'easy to remember' number http://www.ifaonline.co.uk/ifaonline/news/1740712/fscs-compensation-limit-uk-set-gbp85k
  • Degenerate
    Degenerate Posts: 2,166 Forumite
    edited 2 January 2011 at 1:58AM
    iinvestor wrote: »
    if a bank goes under and you have a million pound mortgage will the bank cancel it? NO.

    This is a totally illogical parallel to draw. Why would the insolvency of a bank be a reason to grant relief to borrowers? That would be doing further injury to those owed money by the bank. The mortgage assets should be liquidated to pay out to depositors and bondholders.

    The proper comparison is if you have a million pound mortgage and you go under. Then the bankruptcy court will indeed cancel it, if there is money still owing after repossession.
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