Do the same £35k rules on personal savings apply to business/company savings?

altyfc

I've already asked this in the merged Northern Rock thread, but I think it's got buried so I hope you don't mind me setting up a new thread, given that it's not actually NR-specific.

OK... here goes...

If you have up to £35,000 on deposit then you would, in the event of insolvency, get back all of the first £2,000 in your account and 90% of the next £33,000. That would be a total of £31,700 per person in compensation, or to look at it another way, a loss of £3,300.

This is presumably what applies to individuals who have savings. What about company savings accounts? Does the same apply?

Thank you.

realaledrinker

In a word - No.

harryhound

The EU Directives, the DGD and the ICD, with which the new scheme must
comply, define persons who are potentially eligible for compensation in respect of their deposits and investments through a range of compulsory and discretionary exclusions. Broadly, this means that ‘professional’ consumers (such as banks, investment firms and insurance companies) and other large entities, such as local government bodies, can be excluded (see Appendix A).
The Directives also permit the exclusion of larger companies, defined as
companies who do not meet at least two of the following criteria:
• A balance sheet total below euro 2.5m
• Net turnover below euro 2.5m
• Fewer than 50 employees

This block of text is taken from the FSA consultation document, when the latest compensation scheme was set up.

The full document is here:

http://www.fscs.org.uk/files/documents/pdfs/bflgoinyetmmqxy.pdf

If you keep digging with Google, the final text of the compensation scheme must be on the FSA site and/or somewhere in Google.

altyfc

harryhound wrote: »

If you keep digging with Google, the final text of the compensation scheme must be on the FSA site and/or somewhere in Google.

Thanks... is this the right document?

http://www.fsa.gov.uk/pages/Library/Communication/PR/2005/138.shtml
http://www.fsa.gov.uk/pubs/cp/cp05_15.pdf

I'm struggling to make sense of it all. In short, I'd just like to know what a small business with, say, £100K in company savings with one bank might get in the way of compensation if that one bank was to go bust.

Similarly, I am guessing if an individual had £100K in personal savings, they'd be best off having it with 3 different banks (bearing the £35k threshold in mind) - is there a similar threshold that would be applicable to a company with excess savings?

Thanks.