Bank won't let me re-deposit following FSCS limit increase

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nefarious
nefarious Posts: 8 Forumite
edited 29 January 2019 at 6:54PM in Savings & investments
nothing to see here...
«13

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  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    I'm with the banks, you didn't need to remove your money, you said it wouldn't have been safe but £75k of it would have been so it was only the £10k amd the tiny chance of losing that part.

    They obviously had to give people the choice, they didn't "choose to ignore the rules ", imagine the stink if they didn't let people withdraw in those circumstances, but I see no reason why it should be a two way thing.

    ( and I'd say it's not that safe anyway, it's most likely losing money due to inflation, and that's a certain risk against the tiny one of a bank going bust)
  • Stubod
    Stubod Posts: 2,177 Forumite
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    ..I'm with the banks...they offered the option for you to remove money, you chose this option. I do not see any way you can expect them to put money back in if it's "fixed term".....I would look somewhere else to put your money...
    .."It's everybody's fault but mine...."
  • nefarious
    nefarious Posts: 8 Forumite
    edited 29 January 2019 at 6:55PM
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    nothing to see here...
  • MyOnlyPost
    MyOnlyPost Posts: 1,562 Forumite
    edited 2 February 2017 at 7:42PM
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    nefarious wrote: »
    I realise few people will have my issue and it may not attract much sympathy.
    Most people who have multiples of £75k probably don't have them stashed in long term savers as the money could be earning far more if diversified. What interest rates are you now missing out on and what sum are we talking about? I'm sure some on the board could advise you how to make more money than you would if you could put it back in
    nefarious wrote: »
    Leaving £10k would seem reckless to me, I'm not a chancer. It's still a lot of money, so I felt I had no choice but to withdraw, little did I know that one year later they'd raise the limit back up again!

    Nobody knew, but nevertheless it was your choice to take it out and we have to live by our decisions whether good or bad. I fixed my mortgage on a 7 year deal in December 2007, oh if I could have that decision back.
    It may sometimes seem like I can't spell, I can, I just can't type
  • chucknorris
    chucknorris Posts: 10,786 Forumite
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    edited 2 February 2017 at 7:51PM
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    nefarious wrote: »

    I realise few people will have my issue and it may not attract much sympathy.

    If you have £m's in other investments then you are in the same boat as us, but I suspect that you haven't, why on earth do you store your wealth in cash? I only have about £30k in cash, why would I want more, when the return is so poor?

    EDIT: If you are quite elderly I would understand your choice of cash.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    nefarious wrote: »
    Leaving £10k would seem reckless to me, I'm not a chancer. It's still a lot of money, so I felt I had no choice but to withdraw, little did I know that one year later they'd raise the limit back up again!

    I realise few people will have my issue and it may not attract much sympathy.

    My answer was nothing to do with sympathy, and everything to do with the contradiction of putting huge amounts of money in long term accounts which will for sure lose you value, whilst at the same time worrying about the minute chance of a bank going bust and losing you £10k. You could easily lose 10% , e.g. £7.5k due to inflation on a five year fixed deal taken out now.
  • steampowered
    steampowered Posts: 6,176 Forumite
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    Could you not open a separate account with the same bank to hold this £10k?

    If this money is intended to last for the long term, you may be better off moving a chunk of it into stock and shares investments. Perhaps consider investing into a diversified managed fund. There is a good reason why pension funds invest that way.

    Inflation will erode the value of your money over time and is realistically a much more significant risk than the risk of your bank going under.
  • Pincher
    Pincher Posts: 6,552 Forumite
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    edited 2 February 2017 at 8:04PM
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    Pretend you are the bank. They obliged you by finding £10k to give back to you, probably at higher cost to them, because your £85k is being lent to somebody in a five year deal.

    They had to get the £10k from somewhere, and they can't just say to the guy they borrowed the £10k from, I don't want it any more, can we just call it off.

    Why don't you offer to pay their costs, for taking the £10k out, AND for putting it back in?

    You are right, I'm kidding. They have a huge pot of money sitting around doing nothing anyway, so they will just throw the £10k on the pile and say no big deal. ;)
  • dunstonh
    dunstonh Posts: 116,622 Forumite
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    Following an insurance payout years ago, I've had to spread my money among several banks in order for it to be protected to the FSCS limit.

    rephrase.... I have chosen to.
    but the only way of not getting stung by low interest rates seems to be to spread it out among a range of savings accounts.

    or use investments.
    Fast-forward to now, the new FSCS limit has been raised to £85k and I've asked the bank in question (shawbrook) if it would be possible to re-deposit the amount I'd felt obliged to withdraw but they've refused to let me. I know you're not normally allowed to deposit extra funds into a fixed-term savings account, but then again you can't normally withdraw funds without penalty, but the bank chose to ignore this. I feel short-changed, is there any way of challenging this??? Any help much appreciated!

    A fixed term deposit is a fixed deposit by a certain date to be held for a certain period. You cant funds after a given date as it would cease to be a fixed term deposit.

    No, there i no way of challenging it as you chose to deposit £75k and the date to increase it that has now past. You have not been short changed. There is no wrongdoing here.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Superscrooge
    Superscrooge Posts: 1,171 Forumite
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    Although Shawbrook won't let you replace the cash in your 5 year fix term deposit. There is nothing to stop you opening another 5 year fix with Shawbrook and depositing the £10k in that.

    Alternatively to earn a higher rate of interest. Open a couple of BOS Vantage accounts (3% on 2 x £5,000)
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