£35,000 rule

maypole

Also, just heard on Working Lunch, that if you have a joint account with one institution, you each get compensated.:j

cowbutt

National Savings are backed 100% by HM Treasury, as per http://www.nsandi.com/privacy/backedbytreasury.jsp

LOST

the £35k rule is for cash savings with UK deposit takers covered by the FSA- there are higher limits for investments and life products etc..

but remember that compensation schemes should not relied upon when saving and investment - the golden rule is how safe you think the institution actually is - compensation can be lenghty and remember you will only get back a £31,700 from your £35,000 as your first £2k is 100% protected and then 90% of the next £33k is covered.


would i spread my savings with the deposit takers that offer high rates (e.g. ICICI and Icesave etc..)? hell yes! my personal philosophy is never to put all your eggs in one basket!

1jim

masonic wrote: »

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

Is there a list somewhere of all companies/brands that share the same FSA certificate? It seems remarkable to expect all consumers to know this as most customers would not which companies were sharing this certificate and which had their own

steady__eddie

Re the links in Kazza's post (4), I had a look at the FSCS FAQs.
Number 6 reads as follows,
6. Do I have to pay anything to have my claim considered by FSCS?

No. FSCS is a non-profit, independent organisation set up under FSMA. Our service is free to consumers.

Could someone please tell me what FSMA stands for please ? I reckon that I can figure out the first 2 letters but the last 2 have got me thinking.
I understand that there are currently ongoing reviews which could probably report with recommendations any year now but the present limits are in my view, somewhat pathetic with respect to small savers. The present "completely safe limit" of £2k will not even cover one years ISA limit. In the current climate where HMG is apparently trying to encourage people to save, the possibilty of being financially mugged is, I would suggest, not a very good advert.
I appreciate that savers with larger amounts of cash have more to lose but there is to some extent a possibility to mitigate losses by "spreading it about a bit". The downside is the inconvenience that this can cause.
Some time ago, the banks said that they did not offer speedier cheque clearance because the consumer did not demand it. Shortly afterwards, the consumers did demand it and demanded it loudly. Result, (well not quite yet), but in the fullness of time maybe, speedier cheque clearance times.
Is it not time that the consumer demanded better protection and demanded it loudly ?

LittleVoice

steady__eddie wrote: »

Could someone please tell me what FSMA stands for please ?

Financial Services and Markets Act of 2000.

Google is a wonderful thing!

masonic

1jim wrote: »

Is there a list somewhere of all companies/brands that share the same FSA certificate? It seems remarkable to expect all consumers to know this as most customers would not which companies were sharing this certificate and which had their own

You just need to look at the FSA registration information provided by the bank (usually found on the front page of their website). For example...

Birmingham Midshires is a division of Bank of Scotland plc, which is authorised for accepting deposits by the Financial Services Authority. It is entered in the FSA's Register and its Register Number is 169628. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh, EH1 1YZ.

Or, you could go to the FSA register here to check whether a company is registered in it's own name (although that won't tell you which organisation they are registered through).