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

MSE_Luke

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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Mandelbrot

A benefit already from the Brexit result ...

talexuser

Mandelbrot wrote: »

A benefit already from the Brexit result ...

If only the £ really crashed then we could have a million protection

jimjames

So much for action to help the average struggling family...

nbrewitt

Why not round it up to £100K?

nbrewitt

Having said that, since NS&I are offering one of the best instant access rates at the moment, the protection is relatively meaningless

Pincher

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

Misleading title when it's not even confirmed yet.

ColdIron

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

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

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.