MSE News: Savings protection limit set to return to £85,000

The Bank of England is set to restore the savings protection limit to £85,000 per institution...
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'Savings protection limit set to return to £85,000'
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Comments

  • Mandelbrot
    Mandelbrot Posts: 9,139 Forumite
    Rampant Recycler
    A benefit already from the Brexit result ... ;)
  • talexuser
    talexuser Posts: 3,498 Forumite
    Name Dropper First Post First Anniversary
    Mandelbrot wrote: »
    A benefit already from the Brexit result ... ;)

    If only the £ really crashed then we could have a million protection ;)
  • jimjames
    jimjames Posts: 17,580 Forumite
    Photogenic Name Dropper First Anniversary First Post
    So much for action to help the average struggling family...
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Why not round it up to £100K?
  • Having said that, since NS&I are offering one of the best instant access rates at the moment, the protection is relatively meaningless
  • Pincher
    Pincher Posts: 6,552 Forumite
    Combo Breaker First Post
    nbrewitt wrote: »
    Why not round it up to £100K?

    I think they base it on EURO100k.

    £75k ~= EUR100k before the sterling fall.

    Now it's £85k ~= EUR100k.

    People were complaining last time, because they had £85k in a, say, five year fixed bond, when it went down to £75k. If they actually
    redeemed early to keep the total with one bank below £75k, it is now the time to cry over spilled milk.
  • Futuristic
    Futuristic Posts: 1,127 Forumite
    First Anniversary First Post Photogenic Name Dropper
    Misleading title when it's not even confirmed yet.
  • ColdIron
    ColdIron Posts: 8,995 Forumite
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    Futuristic wrote: »
    Misleading title when it's not even confirmed yet.
    Sounds like a done deal

    The Prudential Regulation Authority (PRA), part of the Bank of England, will now consult on the plan, although the idea has already been approved by the Treasury and the European Commission
    The consultation will close in less than a month, on 16 December
  • eskbanker
    eskbanker Posts: 30,820 Forumite
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    ColdIron wrote: »
    Sounds like a done deal

    The Prudential Regulation Authority (PRA), part of the Bank of England, will now consult on the plan, although the idea has already been approved by the Treasury and the European Commission
    The consultation will close in less than a month, on 16 December
    I suspect that the consultations are pretty much a formality but I'd agree with Futuristic that it's not actually a done deal (despite the heavyweight backing quoted above), hence all the references to the forthcoming consultation on proposals in http://www.bankofengland.co.uk/pra/Pages/publications/cp/2016/cp4116.aspx.
  • EdSwippet
    EdSwippet Posts: 1,588 Forumite
    First Anniversary Name Dropper First Post
    Pincher wrote: »
    If they actually redeemed early to keep the total with one bank below £75k, it is now the time to cry over spilled milk.
    When the limit was reduced, most (if not all?) banks and building societies allowed folk who would be over the reduced limit a one-time, penalty-free withdrawal of up to £10k from bonds that were otherwise fixed term.
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