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

Eco_Miser

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,

Just out of curiosity, if the FSCS did not exist, how much would you have placed with each bank?

Dird

Eco_Miser wrote: »

Just out of curiosity, if the FSCS did not exist, how much would you have placed with each bank?

It'd be under my mattress after Northern Rock etc died (assuming they let people lose their money) :-o

Keep_pedalling

I dread to think how many £10,000s the OP has lost holding so much in cash over several years.

martinsurrey

Keep_pedalling wrote: »

I dread to think how many £10,000s the OP has lost holding so much in cash over several years.

Well most FTSE 250 acc trackers are up over 50% in 4 years, assuming a generous 3% 5 year bond, £75K in bonds is now £84k while the same in a tracker would be £112.5k, so about £30k per bond.

as the OP has several, I guess its 6 figures.

a whole lot of dough.

Pincher

Five year fixed rates were pretty decent, once upon a time.

I still reminisce on a Nationwide three year fixed bond that was about 6% from circa 2009.

A potential problem is tax. If you start a bunch of five year fixes at once, and they all pay out at the end, it's a real pain. If it pushes you into higher rate tax, you lose £500 Personal Savings Allowance, and you pay some 40% tax. Remember you have other income as well, so £20k interest wouldn't push you into higher rate tax, but you can have pension (state/private) , mobility allowance, etc.

Starting from April 2016, you get £5,000 dividend allowance, and if you go above it, it's only 7.5% tax, until you hit higher rate. This is versus £1,000 allowance for interest, above which you pay 20% tax :eek: , and then 40% higher rate :eek: :eek:

If I was the OP, I would have started moving some money into dividend generating assets from 2015, as they mature.

colsten

I can understand that Shawbrook, or any other bank, have no mechanism for adding money to a fixed term account after an initial deposit period, and that there are not enough customers to justify a change to their systems for such an exceptional event.


The £10K must have been sitting in an account(s) of sorts since it was withdrawn. Presumably the money has been earning some interest since then? How much would it earn in Shawbrook, how much does it earn where it is now? What is the maximum it could earn?

PeacefulWaters

This is a case of the customer wanting to have their cake and eat it.

Tough!

eskbanker

IanManc wrote: »

The bank has done nothing wrong. Indeed the bank acted very fairly in allowing depositors to withdraw from non-withdrawal term accounts during the term when the compensation limit was reduced.

Agreed, let's hear it for The Shawbrook Redemption

Gadfium

IanManc wrote: »

"I had no choice" is the mantra of people who make free choices and then regret the choice they have made.

The OP had the choice to leave the money where it was or remove it, not "no choice". Now the OP feels "short- changed" because he/she wants someone else to blame for the free choice he/she made and now regrets.

The bank has done nothing wrong. Indeed the bank acted very fairly in allowing depositors to withdraw from non-withdrawal term accounts during the term when the compensation limit was reduced.

AKA "Buyers Remorse"

https://en.wikipedia.org/wiki/Buyer's_remorse

jimjames

nefarious wrote: »

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

That's one statement that does seem to be correct!


Surely you can get vastly more interest on that £10k outside the fixed rate bond. Or is it paying more than 3%?