FSCS cash limit coming down to £75K / new £1m temp protection

alanq

jimjames wrote: »

The vast majority of UK savers (maybe 85%+?) have nowhere near the limit at £85k or £75k so the numbers potentially affected will probably be relatively small.

Rollinghome wrote: »

I'd be surprised if 15% of savers had near £85k.

95% of savers will still be covered by the new limit.

http://www.fscs.org.uk/what-we-cover/questions-and-answers/qas-about-limit-changes/#question4

ratechaser

alanq wrote: »

"The PRA is consulting on rules that will require firms to allow depositors to withdraw funds from the account or accounts of their choice, including fixed-term accounts, even in circumstances where the depositor has an instant access account that could also be reduced. However, this rule will allow a depositor to make only one withdrawal without charge."
http://www.fscs.org.uk/what-we-cover/questions-and-answers/qas-about-limit-changes/#question11

Good spot, thank you... DW and I are certainly in this boat with one particular bank, with a bond that doesn't mature till end 2017. May not ultimately do anything, there is such a thing as being TOO cautious, but good to know there is at least an option...

Noble_Savage

Rollinghome wrote: »

if they're going to constantly move it up and down with currency movements, some will never know what the limit is.

When the limit went to EUR100,000 in 2010 it was stated that the pound sterling equivalent would be reviewed every five years. Which is what's happening now.

Not quite the same as 'constantly moving it up and down with currency movements'.

saintalan

Archi_Bald wrote: »

...

In slightly better news: From today, 3 July 2015, depositors with temporary high balances will be covered up to £1 million for six months from the date on which the money is transferred into their account...

So can we switch excesses between spouses every 6 months or do we just have to spread over more accounts?

Archi_Bald

There is now a separate FSCS announcement and Q&A about the rules for the protection for up to £1m temporary balances

http://www.fscs.org.uk/news/2015/july/new-protection-from-today-for-temporary-high-balances/

2010

alanq wrote: »

95% of savers will still be covered by the new limit.[/URL]

So if only 5% are affected, why change it.
EU interference yet again.

melbury

Why can't these meddlers stay out of it:mad:

Who cares about the Euro..........

Archi_Bald

2010 wrote: »

So if only 5% are affected, why change it.
EU interference yet again.

The change is written in law. It is being reviewed every 5 years. EU left it at €100K Euros, UK aligned due to current exchange rate.

melbury wrote: »

Why can't these meddlers stay out of it:mad:

Who cares about the Euro..........

like it or not, the Euro is used by about 5 times as many people as use the GBP.

I would hazard a guess that it if wasn't for the EU Directive we would

1. still have a £50K max deposit protection (as we had before the Directive became law)

   The maximum level of compensation for claims against firms declared in default before 1 January 2010 is 100% of the first £30,000 and 90% of the next £20,000 up to £48,000 per person per firm.

2. we would not have the temporary protection for "life events" that we have as of today

I would further hazard a guess that we would lose some of the existing protection if we left the EU.

Of course I have no proof for my guesses but nobody can convince me that the UK government would have legislated as favourably if they hadn't been obliged to.

dunstonh

Its not medling. it is acting as intended and agreed.

Now, it may seem a little silly but it is logical that if you agree to have a 100,000 Euro protection across all EU countries and those that are not using the Euro rebalance the protection to 100k equivalent every 5 years then it really shouldnt surprise anyone that the figure is changing after year 5.

masonic

2010 wrote: »

So if only 5% are affected, why change it.
EU interference yet again.

Presumably it would still be £50,000 if it wasn't for EU interference causing it to be raised in the first place.