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Can a UK resident hold his savings in Euro and still be covered by a compensation scheme like FSCS?

LafaHaha
Posts: 1 Newbie
I have little faith that the British Pound won't plummet and was wondering if I could hold my savings in Euro currency.
Is there any approaches where the savings would still be covered by schemes like FSCS or something similar in case the institution which holds my Euro savings goes bankrupt?
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Comments
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EU countries generally have equivalent deposit guarantee schemes if you're saving elsewhere (the £85K limit was chosen because of its approximate equivalence to the €100K figure used elsewhere in Europe), or deposits in regulated UK institutions are protected by FSCS regardless of currency.
However, what would you hope to achieve by saving in a currency that you (presumably) don't spend money in - are you attempting some low-level currency speculation, in the hope that you could change it back to sterling cost-effectively in future?0 -
The best protection against devaluation of cash is to hold your assets in something other than cash. I wouldn't hold cash deposits in any account that wasn't FSCS protected - I did so once before with an Icelandic bank and very nearly lost my savings due to the country in question reneging on it's obligations under EU law to compensate me. Luckily the UK Government stepped in on that occasion; I wouldn't expect it to do so again. To the best of my knowledge, no compensation scheme other than the FSCS has ever paid compensation to UK savers (even when we were part of a larger union, which is clearly not the case now).
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I am guessing the op is asking if they open a UK bank account and hold their savings in EUR would fscs still apply even though the money was not in GBP
for example starling bank have a Euro account and they specifically say that the money in there is fscs protected up to 85000
I cannot answer the general question though...0 -
Can a UK resident hold his savings in Euro and still be covered by a compensation scheme like FSCS?
I am a UK resident who holds (some of) his savings in Euro (and some in USD) and the balances are still covered by a compensation scheme 'like FSCS'. In fact, FSCS.
FSCS isn't limited to pounds sterling, it is simply the case that pounds sterling is the legal tender currency in the UK so the UK FSCS limit is measured in sterling.
I don't have large amounts in foreign currencies as I don't have significant day to day outgoings in foreign currencies, only from time to time. And the interest rates are poor of course. However what I do have, is covered, as I am a UK individual with balances in a UK regulated bank.happy_hazelnuts said:
for example starling bank have a Euro account and they specifically say that the money in there is fscs protected up to 85000
I cannot answer the general question though...
Well, that does answer the general question in the thread title and OP.0 -
I have little faith that the British Pound won't plummet and was wondering if I could hold my savings in Euro currency.
It would make sense to have money in foreign currency , if you were likely in the near future to have significant expenditure in that currency . For example if you were buying a home in France in the next 12 months , it would make sense to have at least some of the purchase money held in Euros , to hedge against currency moves. Or if you had financial dealings generally related to foreign owned assets .
Otherwise you are just speculating/gambling on unpredictable currency movements , which is a dangerous game for the non professional.
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I have little faith that the British Pound won't plummet and was wondering if I could hold my savings in Euro currency.
And what are you going to do when you get that wrong and Sterling rises?
Using cash to bet on exchange rates is largely pointless. Especially if you make the move after the drop has happened.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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