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Financial Services Compensation Scheme

David_Beale
David_Beale Posts: 3 Newbie
in Deaths, funerals & probate
My wife & I opened a jointly held bond of value £150000. The protection afforded by the FSC Scheme
is £150000 I,e, £75000 each.
My wife has died & the account now becomes owned by me with the protection level of £75000.
If the bank fails I stand to loose the balance of £75000.
This cannot be fair can any one offer advice how to retain the original full value protection.

Comments

  • Yorkshireman99
    Yorkshireman99 Posts: 5,470 Forumite
    Basically you cannot. You need to reduce your holding.
  • SeniorSam
    SeniorSam Posts: 1,674 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If it is one of the major banks, don't worry. Which one is it?

    Sam
    I'm a retired IFA who specialised for many years in Inheritance Tax, Wills and Trusts. I cannot offer advice now, but my comments here and on Legal Beagles as Sam101 are just meant to be helpful. Do ask questions from the Members who are here to help.
  • Keep_pedalling
    Keep_pedalling Posts: 22,417 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    edited 13 November 2015 at 9:12AM
    What you can do rather depends of the terms of the bond and how much longer it has to run. The risk of you losing £75,000 is a very small indeed so you should worry too much about this, and in the mean time speak to your provider, under the circumstances you may be able to close the bond without penalty.
  • David_Beale
    David_Beale Posts: 3 Newbie
    Thank you Sam. It is Investec.
    Your reply aligns with others received so I feel a lot better about it. Our savings were hard won.
  • David_Beale
    David_Beale Posts: 3 Newbie
    Thank you.
    You will have seen the other replies agreeing with you.
    Makes me feel I should worry about something else!!!!
  • BobQ
    BobQ Posts: 11,181 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    If it was a joint account are you still bound by the original terms? Worth checking as peace of mind might just mean moving half of it to another provider.
    Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.
  • Newly_retired
    Newly_retired Posts: 3,290 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Check the T & C. You may find that the death of one of the joint holders means you can close the bond prematurely.
This discussion has been closed.
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