Savings protection changes?

ipri

Hi...do all banks /BSocs offer penalty free withdrawals from set term accounts to allow reduction below new £75K limit? thanks.

FOREVER21

I think this will apply to all banks/building societies.

Coventry and BOS have both written to me advising of the options. After reading the letters I need to get back to them to clarify a point.

I wonder what will happen if you hold over £75 K in a ISA, the letter indicates that you need to contact them for special instructions to transfer the excess up to £10K.
But if you have already paid the max into this years ISA I wonder how this will work.

Like I say I will need to get in touch with them, but just trying to see if anyone has gone down that route yet and has the answer.

colsten

Yes, all of them must allow a penalty-free one-off, max £10K, withdrawal (/transfer if ISA) to everyone affected by the FSCS protection drop, before 31/12/2015.

Those affected are people who had more than £75K in a single financial institution on July 3 2015, when the drop was announced.

"Penalty-free" means that no charge for breaking T&Cs can be made. It does not mean that the account holder is guaranteed the same interest rate elsewhere.