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MSE News: Chancellor called to prevent 'absurd' savings protection cut

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  • alanq
    alanq Posts: 4,216 Forumite
    Combo Breaker First Post
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    le_loup wrote: »
    We used to have protection for £30K until that dreadful EU made us put it up to 100K Euro.

    Before Northern Rock crashed compensation was 100% of the first £2,000 then 90% of the next £33,000. £31,700 max.

    This was later raised to 100% of £50,000 before being raised again to 100% of £85,000 to match EU €100,000 requirement.
  • hra_2
    hra_2 Posts: 92 Forumite
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    Here is the actual legislation hopefully to clarify (the latest amendment) with the definition of "affected person" in 57.15 with no mention of a 2014 cut-off:

    http://www.bankofengland.co.uk/pra/Documents/publications/ps/2015/ps1815instr1562.pdf

    It sounded from the post-consultation document (2.12) that the legislation (in their view) prevented them from "grandfathering" all the pre-existing deposits as opposed to some of them. That would have left them with 3 regimes: pre Jul 2014, Jul 2014-Jul 2015 (with the overhead of withdrawals) and post Jul 2015. And of course the limit could change again.
  • polymaff
    polymaff Posts: 3,908 Forumite
    First Anniversary Name Dropper First Post
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    hra wrote: »
    It sounded from the post-consultation document (2.12) that the legislation (in their view) prevented them from "grandfathering" all the pre-existing deposits as opposed to some of them. That would have left them with 3 regimes: pre Jul 2014, Jul 2014-Jul 2015 (with the overhead of withdrawals) and post Jul 2015. And of course the limit could change again.

    The EU legislation leaves the treatment of pre-Jul 2014 up to individual member states. The BoE / PRA document I quoted sits neatly on the fence. I've asked BoE / PRA to come off the fence.

    Not holding my breath, though...
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