Bank account protection

tre4bax

Okay so a bank account is protected up to £85000 per institution.

Suppose however you are using an offset mortgage and owe for example £100K, yet in your bank account you have the £100k. At this point you are paying no interest on your mortgate but you are sitting on a cash pile £15K above the protection level.

My logic says if the bank went into administration then you would be entitled to the £85K protection on anything above the £100K you have in your account because the debts and credits balance.

Cynical experience of life however leads me to suspect that you'd end up loosing the £15K.

Does anyone know the truth of this?

MoneySaverLog

Don't know but I'm a cynic too and guess you'll lose £15K

opinions4u

Since 31st December 2010 the FSCS is only looking at combined credit balances.

So if your offset account is truly an account of its own it will only be covered up to £85k.

Prior to the date above, different.