Protected by other jurisdictions' schemes and Islamic accounts

oldwiring

This is a mishmash enquiry arising from my wanting to put aside money that has been building up. I ask out of curiosity more than anything else.

1). RCI bank has protection up to Euro. 100000. In the event of failure, if I had made a deposit of say £50000 would a change in exchange rates have potential to raise/ diminish the sterling compensation?

2. Under the current allowance of free of tax interest payments allowances, does profit on an Islamic account qualify for such treatment, or is it treated as , say general income?

Malthusian

1. In general terms yes - it will be based on whatever €100,000 is worth at the time that RCI (hypothetically) collapses. But the pound is unlikely to go to £1 = €2 overnight, so as long as you don't tie all your money up in a five year bond so that you couldn't withdraw the money if the level of cover changed, it's not much to worry about.

2. Yes, it's savings income and is covered by the personal savings allowance.

bigadaj

Malthusian wrote: »

1. In general terms yes - it will be based on whatever €100,000 is worth at the time that RCI (hypothetically) collapses. But the pound is unlikely to go to £1 = €2 overnight, so as long as you don't tie all your money up in a five year bond so that you couldn't withdraw the money if the level of cover changed, it's not much to worry about.

2. Yes, it's savings income and is covered by the personal savings allowance.

On point 1 I'd agree with your analysis of the risk with regards to exchange rates but would have far more concern about claiming from a French compensation scheme as a uk customer, whether that be pre or post brexit.

oldwiring

@ bigadaj That's a point I did not go into, but I can see that making a claim in a foreign language to another country could be a problem.

ATM the French scheme is based on the Euro, but with populism about, if a EU state were to decide to go its own way and re-instate its own currency there also could be problems of abrogation.