Time limit to move FTD excess to keep within new FSCS limit

realaledrinker

Hi all,


Does anyone know the time limit during which you are allowed to move funds out of a FTD in order to keep your exposure to an institution to below the new £75,000 limit?


Plenty of internet comment that this is allowed but it all dates from 6 months ago with no details of the mechanics involved. I'm hoping the shutters don't come down on 31st December!

chris_m

Have you tried asking the institution where your money is presently located what the arrangements are?

colsten

realaledrinker wrote: »

I'm hoping the shutters don't come down on 31st December!

They do. You had 6 months to make appropriate arrangements.

realaledrinker

colsten wrote: »

They do. You had 6 months to make appropriate arrangements.

Not strictly true as all the commentary from July states that the FSCS would consult with institutions to agree how access without penalty would work.


Anyway my provider states that as long as I get a form to a branch by 31 Dec I have until 31 Jan to action it.


Hopefully this is a belated wake up call to others!

jimjames

Depending on your need for the cash you might want to look at options for some of it in S&S ISAs, you'll then get a separate £50,000 protection for each institution.
Oh and Happy Christmas from a fellow real ale drinker :beer:

colsten

realaledrinker wrote: »

Anyway my provider states that as long as I get a form to a branch by 31 Dec I have until 31 Jan to action it.

Your provider is not the one who provides the FSCS guarantee, and certainly isn't the one that would pay you any money if said provider went bust....... Therefore you shouldn't rely on what they are telling you. You need to read what the FSCS say, e.g.

Mark Neale, Chief Executive of the FSCS, says: “The £85,000 limit ends on 31 December 2015.
http://www.fscs.org.uk/news/2015/november/countdown-to-a-new-deposit-limit-in-january/

*From 1 January 2016 deposit limit for bank accounts will be £75,000, and £150,000 for joint accounts.
http://www.fscs.org.uk/what-we-cover/eligibility-rules/compensation-limits/

I have not seen any mention of 31st January on the FSCS site.

chris_m

colsten wrote: »

I have not seen any mention of 31st January on the FSCS site.

Could be the end of the timescale for a penalty-free withdrawal?

colsten

Possible. But it wouldn't influence the sum protected by FSCS.

Eco_Miser

colsten wrote: »

Your provider is not the one who provides the FSCS guarantee, and certainly isn't the one that would pay you any money if said provider went bust....... Therefore you shouldn't rely on what they are telling you. You need to read what the FSCS say, e.g.

I have not seen any mention of 31st January on the FSCS site.

The guarantee drops 1 Jan 2016, but that wasn't the question. For realaledrinker apparently the answer to the question asked is 31 Jan 2016, provided the form is received this year. This is probably longer than the legislation requires, and should their provider fail in the extra month, the extra £10k could be lost.

Yorkshire_Pud

Buy a diary, enter relevant dates, and avoid the 'drama':)

colsten

Eco_Miser wrote: »

The guarantee drops 1 Jan 2016, but that wasn't the question.

The question I read was

realaledrinker wrote: »

Does anyone know the time limit during which you are allowed to move funds out of a FTD in order to keep your exposure to an institution to below the new £75,000 limit?

The answer to that is 31 December 2015. As you rightly say, and as I said before, if the provider allows moving the cash after that date, and should their they fail after 31st December 2015, the extra £10k could be lost