Do you have unshakable belief in the FSCS?

aaj123

Yes:

grumbler said:

This  question makes no sense. Belief in what?

That your £85K will be refunded? Sure they will - the government will print whatever is needed.

Will it be the same £85K that you expect? Quite possibly, not. The purchasing power can drop unpredictably depending on what banks fail and the amount printed.

Exactly this. This is no normal guarantor. Its one who has the ability to magik money out of the air if required to refund you. 

25_Years_On

If society is collapsing then we can't rely on anything. Imagine in the FSCS didn't pay up then that would lead to the collapse through contagion.However when that Icelandic Bank when bust, and it wasn't covered by the FSCS, the Government sent me a cheque. I believe they recovered the money from Iceland in the end.

Borisjake

Out of interest, is there any record of instances where they have paid out?
Most banks survived the 2008 calamity, didn't they? 

Thumbs_Up

Yes:

bryanb said:

Worked for me when Iceland bank went under. In fact they paid out more than the guaranteed sum at the time.

So you was lured in by a juicy saving rate? We bullied Iceland to pay up.  

eskbanker

Borisjake said:

Out of interest, is there any record of instances where they have paid out?
Most banks survived the 2008 calamity, didn't they? 

There have been plenty of instances of FSCS paying out but, despite the disproportionate amount of debate on here about their protection of cash deposits, the payouts related to that are minuscule at <1% of the total, and (at least recently) are for small credit unions rather than banks as such:

https://forums.moneysavingexpert.com/discussion/comment/79686613#Comment_79686613

Macsidia

Yes:

Well. I did have some money in Icesave.

TheBanker

Yes:

eskbanker said:

Borisjake said:

Out of interest, is there any record of instances where they have paid out?
Most banks survived the 2008 calamity, didn't they? 

There have been plenty of instances of FSCS paying out but, despite the disproportionate amount of debate on here about their protection of cash deposits, the payouts related to that are minuscule at <1% of the total, and (at least recently) are for small credit unions rather than banks as such:

https://forums.moneysavingexpert.com/discussion/comment/79686613#Comment_79686613

FSCS also paid out about £15bn for Bradford and Bingley - but as the accounts were transferred to Santander the customers didn't see this. The money was later recovered through the sale of B&Bs assets.

Malthusian

Borisjake said:

Out of interest, is there any record of instances where they have paid out?

There is, on the FSCS' website.
Over the last five years the FSCS has paid out for banking collapses around 5 times a year. (Small ones but a bank is a bank.)

Most banks survived the 2008 calamity, didn't they? 

They certainly did. You can still open a Northern Rock account (now called Virgin Money but it's the same bank).
Can you imagine people being willing to go into a bank that had previously gone bust and open new accounts in the pre-FSCS 1800s era when it was considered normal for depositors in failed banks to lose their money?

Ocelot

Thumbs_Up said:

bryanb said:

Worked for me when Iceland bank went under. In fact they paid out more than the guaranteed sum at the time.

So you was lured in by a juicy saving rate? We bullied Iceland to pay up.  

We had to. They were going to steal UK residents' money in an act of piracy.

DullGreyGuy

There was no... "it depends" option

For savings? No doubts

For other things it can get a little more unclear... I know a few years ago when dealing the FSCS they obviously had their headline that if a company fails today then pensions and annuities are covered 100% however on digging deeper there was a carveout for uncapped index linked benefits where the FSCS wouldnt be pinned down on confirming that this would be covered (ie todays rate certainly is but not definitely the increases).