FSCS PROTECTION

bodmas77

I recently looked a Virgin cash ISA and found protection is joint with Clydesdale and Yorkshire bank. It also seemed to suggest that if I held a cash ISA with say Fred Bloggs and co that if they unbeknownst to me happened to bank the money with any of the above three I would not have  the £85k protecion both at Virgin and fred Bloggs and co and anything over £85K that happens to be banked say at the Clydesdale by them would not be protected. If that is true there is no way that you can protect yourself since you ISA could be regulary be moved between banks by them.

ColdIron

Easy enough to check

https://www.which.co.uk/money/savings-and-isas/savings-accounts/fscs-are-my-savings-safe-aW00D9u2dt8m#tool-who-owns-who-in-the-savings-market

eskbanker

bodmas77 said:

I recently looked a Virgin cash ISA and found protection is joint with Clydesdale and Yorkshire bank. It also seemed to suggest that if I held a cash ISA with say Fred Bloggs and co that if they unbeknownst to me happened to bank the money with any of the above three I would not have  the £85k protecion both at Virgin and fred Bloggs and co and anything over £85K that happens to be banked say at the Clydesdale by them would not be protected. If that is true there is no way that you can protect yourself since you ISA could be regulary be moved between banks by them.

You could avoid using the likes of Fred Bloggs and Co, and stick to those who retain deposits directly?

35har1old

bodmas77 said:

I recently looked a Virgin cash ISA and found protection is joint with Clydesdale and Yorkshire bank. It also seemed to suggest that if I held a cash ISA with say Fred Bloggs and co that if they unbeknownst to me happened to bank the money with any of the above three I would not have  the £85k protecion both at Virgin and fred Bloggs and co and anything over £85K that happens to be banked say at the Clydesdale by them would not be protected. If that is true there is no way that you can protect yourself since you ISA could be regulary be moved between banks by them.

If you tried to open a new account with Clydesdale and Yorkshire Bank you are taken to the Virgin site so there is no danger of exceeding £85000 as you would be fully aware of the relationship.
Not so with Natwest group Nat West,
RBS & Ulster
LLoyds group LLoyds BOS & Halifax
Through with BOS & Halifax your accounts are visible to each other

TheBanker

bodmas77 said:

I recently looked a Virgin cash ISA and found protection is joint with Clydesdale and Yorkshire bank. It also seemed to suggest that if I held a cash ISA with say Fred Bloggs and co that if they unbeknownst to me happened to bank the money with any of the above three I would not have  the £85k protecion both at Virgin and fred Bloggs and co and anything over £85K that happens to be banked say at the Clydesdale by them would not be protected. If that is true there is no way that you can protect yourself since you ISA could be regulary be moved between banks by them.

I think by 'Fred Bloggs and co' do you mean some of the newer savings providers, who are often app-based, who aren't banks in their own right but accept your deposits and then lodge them with another bank?

Often they will have a relationship with one bank, and their website will say which bank this is.

But if you are concerned, stick to deposit takers that are directly authorised by the FCA and therefore provide FSCS cover in their own right.

boingy

The Moneybox Cash ISA is an excellent example. Their T&Cs say this:

Moneybox uses a range of banks for its Cash ISA. The proportion of money held with each bank can vary over time. However, we will never hold more than 50% of the total funds with a single bank at any given moment.

The banks we use change over time. The banks we currently use are:

HSBC Bank PLC
Santander UK PLCN
National Westminster Bank PLC
Clydesdale Bank PLC
Bank of Scotland PLC
Lloyds Bank PLC

So not only do you not know which bank your money is with but that can change over time so you could inadvertently drift in and out of full FSCS protection without knowing it. 

TheBanker

boingy said:

The Moneybox Cash ISA is an excellent example. Their T&Cs say this:

Moneybox uses a range of banks for its Cash ISA. The proportion of money held with each bank can vary over time. However, we will never hold more than 50% of the total funds with a single bank at any given moment.

The banks we use change over time. The banks we currently use are:

HSBC Bank PLC
Santander UK PLCN
National Westminster Bank PLC
Clydesdale Bank PLC
Bank of Scotland PLC
Lloyds Bank PLC

So not only do you not know which bank your money is with but that can change over time so you could inadvertently drift in and out of full FSCS protection without knowing it. 

You could, and it's quite likely a lot of savers will have some exposure to at least one of the banks listed through their current account or other savings.

If you are concerned, and your combined balances are likely to exceed £85k, then you need to avoid Moneybox and similar products and open accounts with the banks directly.