What is the maximum you deposit

Innys

Hi

I understand there are limits over what the Government will refund you if your bank/BS goes bust.

With this in mind and, assuming you use a reputable bank/BS, do you have a self imposed maximum amount you will deposit with an FSA registered UK financial institution?

I am asking because I am a bit nervous over how much I have deposited with the Coventry BS.

Stonk

The compensation scheme covers you for 100% of the first £2K plus 90% of the next £33K that you deposit with each individual institution.

With that in mind, I keep my maximum deposits to £35K. I don't like the idea of losing 10% of £33K, but I can bear it. Above £35K, you have 0% compensation, and I cannot bear that.

It's very unlikely to happen, but with such a plethora of decent-paying accounts around, there's no reason not to spread your money among them. Doing so also hedges you against any individual institution suddenly becoming uncompetitive.

codetown

I think the risk assessment is a personal thing and it is up to you.
In general I have deposited in the past 50k with confidence with a few institutions and never had a problem.

I am one of those thinking that a reputable bank has lots of means to recover even in the case of sudden bad investements that the risk of going bankrupt are really incredibly small (and even then just to take the customers it would be more likely a takeover by someone else).

I think you are reasonably safe with Coventry BS.
It is not small enough that you could fear about its future.

ReportInvestor

I have recently limited myself to £35K. I think we may have become too complacent of late.

A recent article in Financial Mail by Dan Atkinson raised the issue that globalisation may cut several ways. Why should a national government bother to bale out an international bank?

And so I've tightened my personal savings criteria. Especially since we have so many international banks now operating in the UK (Landsbanki, ICICI, ING to name but the most recent ones to make a splash.)

I have fewer worries about UK building societies, however. But I'm still not going to go above my limit with them, either.