FSC Scheme

ruready

Hi,

Can someone help me to understand what the following means on an Exclusion List on my Nationwide Building Society's leaflet concerning the Financial Services Compensation Scheme please.

At the bottom, it gives an exclusion list where it says A deposit is excluded from protection if: 3) It is a deposit made by a depositor which is one of the following: (in the case I'm interested in is) Pension or retirement fund, with a superscript 1 with a further explanation "Deposits by personal pension schemes, stakeholder pension schemes and occupational schemes of micro, small and medium sized enterprises are not excluded."

What exactly does that mean? My deposits are all pension related, of smallish amounts plus a State Pension. How do I know if they are protected should something go wrong, or have I got completely the wrong end of the stick and am worrying about nothing? Any help would be gratefully appreciated. Thanks.

Linton

I think it is saying that the money is not protected if a pension scheme itself puts money into a Nationwide Account unless it is of a type on the list. I must admit I did not know a stakeholder Pension could anyway.

Brynsam

The FSCS protects savings up to £85,000 with authorised firms and applies to individuals and small businesses - the operative word being 'small' (or at least smallish!).

When you say your deposits are pension related, please could you clarify what exactly that means? Hard to answer your question without being certain. Do you mean that you are investing cash in Nationwide via a pension scheme?That you are paying in (to a non-pension savings account with Nationwide) pension income received from a private pension?

SonOf

I must admit I did not know a stakeholder Pension could anyway.

They don't. However, if you were writing T&Cs, you would include it just in case some product provider did manage to do it.

There are actually personal pensions that invest in Unit Trusts, OEICs, ETFs, ITs and can hold deposits. Not many but they do exist. So, it could theoretically have happened with stakeholder.

My deposits are all pension related

What do you mean by pension related?
Are you saying you hold savings accounts within a SIPP?

ruready

Pension related..... all I mean is my pensions get paid into my Nationwide account.

SonOf

ruready wrote: »

Pension related..... all I mean is my pensions get paid into my Nationwide account.

That is nothing to do with pensions then as the money in Nationwide is not in a pension.

The source of the money does not impact on your FSCS protection.

Brynsam

ruready wrote: »

Pension related..... all I mean is my pensions get paid into my Nationwide account.

So those are personal deposits - the T&C you have quoted relate to deposits by the pension scheme itself. Sleep soundly!

ruready

Thank you Son Of and Brynsam.

That's what I was worried about, and you've now answered my question. Thank you very much.... I can rest easy. :beer: