£35,000 rule

sarahenglish

Does the 35k protection apply to all financial institutions?
So we have the same protection if we're with Barclays, Abbey, Egg or ING?
Thanks
Sarah

LittleVoice

The Financial Services Compensation Scheme covers any firm authorised by the Financial Services Authority. So, yes, Barclays, Abbey, Egg and ING are included.

regularsaver1

But if they share the same licence the rule applies to that licence

for example - from today Halifax, Bank of Scotland, Intelligent Finance and Birmingham Midshires share the same banking licence so the £35k does not apply individually like it did before

Sainbury's only has a 50% share with HBOS and its own licence so would not be combined

http://www.halifax.co.uk/HelpCentre/blc.asp?tag=HOME5

Kazza242

sarahenglish wrote: »

Does the 35k protection apply to all financial institutions?
So we have the same protection if we're with Barclays, Abbey, Egg or ING?
Thanks
Sarah

Provided the financial institution is FSA regulated (which Barclays, Abbey, Egg and ING are) then the protection (offered by the Financial Services Compensation Scheme) will apply (though each claim is considered on it's own merits) should the institution go under. This is why it isn't advisable to open an account which isn't FSA regulated.

The FSCS Compensation Limits.

FSCS FAQs.

arjar

regularsaver1 wrote: »

But if they share the same licence the rule applies to that licence

for example - from today Halifax, Bank of Scotland, Intelligent Finance and Birmingham Midshires share the same banking licence so the £35k does not apply individually like it did before

Sainbury's only has a 50% share with HBOS and its own licence so would not be combined

http://www.halifax.co.uk/HelpCentre/blc.asp?tag=HOME5

What an extraordinary coincidence. On the very day that everyone is trying to understand the protection scheme, HBOS effectively reduces it's value to customers of it's partners (now divisions). Presumably this has been planned for some time - but the timing is very curious.

rgaw1

I have more than £35k with ICICI, under the current climate it, should I split/spread the risk? If so, with who, already have an ISA and a Regular Saver?

masonic

arjar wrote: »

What an extraordinary coincidence. On the very day that everyone is trying to understand the protection scheme, HBOS effectively reduces it's value to customers of it's partners (now divisions). Presumably this has been planned for some time - but the timing is very curious.

No, it's been the case since they've been under the same umbrella. They're just reminding you now.

Steve_xx

rgaw1 wrote: »

I have more than £35k with ICICI, under the current climate it, should I split/spread the risk? If so, with who, already have an ISA and a Regular Saver?

You should split it down into lots of around 33k. This is because you need to take account of the interest accruing on a daily basis which will push the total up above 35k in a relatively short period, ie in just one year.

So you might decide to put some in Halifax's Fixed Rate Web Saver account for 6 months at a rate of 6.7%. You may put some with Sainsburys Internet saver account at 6.25%. You could also get an Icesave account paying 6.20%

LittleVoice

masonic wrote: »

No, it's been the case since they've been under the same umbrella. They're just reminding you now.

Actually I understand there is a change because their individual licences have ended today.

regularsaver1

arjar wrote: »

What an extraordinary coincidence. On the very day that everyone is trying to understand the protection scheme, HBOS effectively reduces it's value to customers of it's partners (now divisions). Presumably this has been planned for some time - but the timing is very curious.

This has been planned for months and months

Licences had to be renewed. Changes was in press, on websites, leaflets in branch ages ago

skronk

Where can one find a list of banks under same umbrella therefore maximising return on losses by spreading cash around ?