Saving Bonds with Building Societies, banks and Others, are they safe?

sweetsand

I'm aware about the finical protection scheme for the UK and EU.
Are straightforward bonds  safe? I am aware that some bonds states your income can go down, investment is at risk but I'm talking about
just plain savings. I've looked on this site best rate is about 1.6 I think for 12 months.

eskbanker

'Bond' is a much-abused term that can be applied to a wide variety of products with entirely different characteristics, but genuine savings will be protected if the institution concerned is FCA-regulated and offers FSCS coverage for the product you're considering.

https://www.moneysavingexpert.com/savings/safe-savings/

Speculator

sweetsand said:

just plain savings. I've looked on this site best rate is about 1.6 I think for 12 months.

5 yrs, not 12 months.

sweetsand

Thank you both.  I was looking last night, though I will only go the ones covered by the compo scheme, I'll go for a big, well established outfit as if they go belly up, it takes yonks to get your money back.

YorkshireBoy

sweetsand said:

I'll go for a big, well established outfit as if they go belly up, it takes yonks to get your money back.

I wouldn't call 15 working days "yonks", and I'd be happy to receive an interim emergency amount to cover cost of living within 5 working days. It's highly unlikely you'd need the latter though, being as you'd locked the cash away for 1/2/3 or more years?

eskbanker

YorkshireBoy said:

sweetsand said:

I'll go for a big, well established outfit as if they go belly up, it takes yonks to get your money back.

I wouldn't call 15 working days "yonks", and I'd be happy to receive an interim emergency amount to cover cost of living within 5 working days.

....and seven days isn't even half a yonk!

https://www.fscs.org.uk/what-we-cover/banks-building-societies/

How long will a claim against a failed bank or building society take?

7 days

FSCS aims to pay compensation within seven days of a bank or building society failing. More complex cases will take longer.

YorkshireBoy

eskbanker said:

YorkshireBoy said:

sweetsand said:

I'll go for a big, well established outfit as if they go belly up, it takes yonks to get your money back.

I wouldn't call 15 working days "yonks", and I'd be happy to receive an interim emergency amount to cover cost of living within 5 working days.

....and seven days isn't even half a yonk!

https://www.fscs.org.uk/what-we-cover/banks-building-societies/

How long will a claim against a failed bank or building society take?

7 days

FSCS aims to pay compensation within seven days of a bank or building society failing. More complex cases will take longer.

I got that timescale from the BLME website, as I (perhaps mistakenly) thought that was the account being considered. Haven't checked the FSCS website, but do they still make the hardship payments mentioned by BLME? Did they ever? Probably not be necessary now though for the sake of a couple of days.

eskbanker

YorkshireBoy said:

I got that timescale from the BLME website, as I (perhaps mistakenly) thought that was the account being considered. Haven't checked the FSCS website, but do they still make the hardship payments mentioned by BLME? Did they ever? Probably not be necessary now though for the sake of a couple of days.

My recollection from ages ago is that there was some phased tightening of the FSCS reimbursement timescales - I do recall the two-tier model you refer to but can't see any reference to it on the FSCS site, not sure if there ever was but it does seem to have less detail than before....