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Question re: Financial Services Compensation Scheme

Reading the FSA website, it seems that the remaining banks have to pay out of a fellow bank collapses. There is almost no money held in reserve, and last year they paid out £149m, and their reserves were £139m.

This is absolutely peanuts compared to the sums of money we are looking at with Northern Rock.

Read section 2.4 in particular here


http://www.fsa.gov.uk/pubs/cp/cp07_05.pdf

Comments

  • I run a small Limited Company which has funds invested in a Northern Rock Buisiness Reserve account, they pay about the best rate for company deposits. The account is in the name of my Limited Company, I'm the MD.

    Does anyone know if companies are covered by the FSCS?

    Thanks!

    Mike
    Mike

    Expat in Australia, but heading back to the UK when the dust settles.
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