Are current accounts covered by Financial Services Compensation Scheme

eskbanker

Johnny4x4 said:

There's another ambiguity which the FSCA does not cover and which I've failed to get an answer to.   I think that most savers assume that if a financial crash occurs the government will pay them their <85,000 in a lump but I suspect that won't happen and that the government will pay in instalments. Say 20% the first year and 10% every subsequent year till done.  The FSCA does not mention how pay outs will occur, yet if savers knew that instalments would be likely they could build a safety-net into their financial arrangements.

Why would you go to all the effort of making up that imaginary process while failing to do what everyone else would do and simply visiting the FSCS website, where, as colsten says, it's all explained clearly?

dunstonh

It's exactly those caveats that I was needing insight on.   It's the  FSCA's job to communicate unambiguously with savers and I like plain English with no caveats.  'Any personal money in a bank account of any kind under £85,000 per person is covered by the £85,000 guarantee'  What's wrong with that?

Its the FSCS.  Not FSCA.

And your example would be incorrect.  It's not just personal money and its per banking licence. That can see different bank names under the same licence. 

There's another ambiguity which the FSCA does not cover and which I've failed to get an answer to.   I think that most savers assume that if a financial crash occurs the government will pay them their <85,000 in a lump but I suspect that won't happen and that the government will pay in instalments.

The Government doesn't make the payment.  The FSCS does. 

Say 20% the first year and 10% every subsequent year till done. 

It's never done that in the past and there is no reason to think that it would in the future.

The FSCA does not mention how pay outs will occur, yet if savers knew that instalments would be likely they could build a safety-net into their financial arrangements. 

The FSCS website confirms it would be within 7 days.    In a widespread event, they may struggle to meet that I suspect.

It is all very well for people to say 'do not worry' but if these things are not explicitly covered the result could be as difficult as for those unfortunates who trusted in Equitable Life.

I think you have misunderstood the EL issue and what happened and what was actually lost (its probably not what you think form what you are saying)

After a two-decade battle for justice, more than 160000 policyholders ... Last hope for victims of Equitable Life injustice as savers are asked to ... Policyholders will be told how the decision could affect their retirement fund

I wonder what your opinion is of this?

I'm not sure what relevance EL has to this thread or the FSCS.