The Top Easy Access Savings Discussion Area

typistretired

Hope you haven't forgot about the £85,000 limit per account covered by the government.

Watson

typistretired wrote: »

Hope you haven't forgot about the £85,000 limit per account covered by the government.

I hadn't forgotten about it since I didn't know it existed. What does "covered by the government" mean?

Edited to add:

Ah, I just looked it up. It's the maximum amount of compensation payable if the bank goes bust or whatever. Hmm... I wonder how much of a risk that is at present? Possibly, I suppose, more so with a smaller institution than with a larger. Or am I mistaken?

.

Steve_xx

Watson wrote: »

I hadn't forgotten about it since I didn't know it existed. What does "covered by the government" mean?

Edited to add:

Ah, I just looked it up. It's the maximum amount of compensation payable if the bank goes bust or whatever. Hmm... I wonder how much of a risk that is at present? Possibly, I suppose, more so with a smaller institution than with a larger. Or am I mistaken?

.

How small was Lehman Brothers?

Watson

Steve_xx wrote: »

How small was Lehman Brothers?

I take the point.

innovate

typistretired wrote: »

Hope you haven't forgot about the £85,000 limit per account covered by the government.

It is not "the government" that guarantees the £85K. It is an industry scheme administered by the FSCS.

Steve_xx

Watson wrote: »

I take the point.

Good. I have to say that even today I think that there are many unstable banks and I also think that a lot of their wrongdoing is still to be revealed. Personally I believe it's far too risky to go beyond the 83k guarantee level.

typistretired

innovate wrote: »

It is not "the government" that guarantees the £85K. It is an industry scheme administered by the FSCS.

Yes you are right, I said the government because they set it all up. Good job I mentioned it though, as they were not aware of the limits.

Snowygirl

I've had a skim through the thread and just wanted to check that I've understood the following correctly

Nationwide FlexDirect pays 5% on a max of £2.5K and requires £1K a month into the account

Santander 123 pays 3% on £3K - £20K and requires £500 per month into the account (which can't come from another Santander a/c) + 2 direct debits. Cost £2 per month.

Lloyds Vantage, BOS (Bank of Scotland?) Vantage and TSB all pay 3% on a max of £5K and require £1k a month.

Is that right?

typistretired

Yes and whereas Nationwide flexdirect requires the £1000 to be from an external source. The others can be internal transfers.

Snowygirl

Thank you typistretired