Savings..If a Bank collapses??? 29 August 2004 at 1:32PM edited 30 November -1 at 1:00AM in Mortgages & Endowments 6 replies 1.5K views

ipri

I understand that only £31700 is payed out to savers if a bank collapses....should I now move any money in excess of this somewhere else??I have much more than £31700 in an internet account..
any ideas where would be best??? Ta Ian

divadee

is it a well established bank?

p.s you might get more answers for this on the savings board

dunstonh

The protection is 100% of the first £2000 and 90% of the next £33,000 with a maximum payment of £31,700.

It may not apply to offshore UK banks depending on their status.

It isnt really worth spreading your money around the top banks. It depends on how paranoid you are.

libra10

If the account was in joint names, would the compensation be the same, or double?

divadee

from what i understand of the rules it is a set amount for that account, so would not be doubled for a joint account.

But i may be wrong on this.

lisyloo

I think it applies each person.

The details are here
http://www.fscs.org.uk/about_us/compensation_limits/

The compensation limit applies to each depositor and covers the total of all their deposits held with that firm. Each individual in a joint account is eligible to receive compensation up to the maximum limit in respect of their share of the deposits (FSCS will assume the split is 50/50 unless evidence shows otherwise).

Note however that it is your total deposits with the firm so goes across accounts.

Milarky

Could be an argument for putting savings in 'joint
name' of all your children also?

BTW, what would the position be if one had an 'offest mortage' [i.e. a net borrower]? I suppose it depends on the terms and conditions, but would a bank try to reduce the value of your offsetting savings under the scheme? You could end up 'owing' them more, could you not?