ISA transfer from Santander ONLY in worse case scenario

Ultrasonic

One thing I realise I am now unsure about is, in the unlikely event of the £85k FSCS being implemented, would someone with an ISA lose the interest they should have earned over the course of the year till the date of the bank failure? For people paid interest annually this won't be part of the account balance (that the customer can see at least) at the time.

Ultrasonic

I decided to stop being lazy and Google my own question - the answer was surprisingly easy to find. Yes, the interest in covered by the FSCS. See the helpful FSCS FAQ here.

innovate

Ultrasonic wrote: »

I decided to stop being lazy and Google my own question - the answer was surprisingly easy to find. Yes, the interest in covered by the FSCS. See the helpful FSCS FAQ here.

Well done you :cool:

I think the FSCS FAQ is actually slightly ambiguous on that point. We should always assume they wouldn't pay any more than £85K. So I would keep my balance somewhat below £85K, to allow for any interest on the balance.

Gordon_the_Moron

The limit on protection is £85k

If you have less than £85k in the account you will earn the interest due, if that interest puts you over £85k you get £85k.

If you want to be 100% protected only deposit £85k - the interest you will earn.