Trading 212 cash isa fscs protection - need to clarify cover

IcelandicWarrior

Hi, I've read a few of the threads on the FSCS cover for a Trading 212 cash ISA account but I'm still unclear regarding the following scenario:

Savings invested directly in Natwest, JPMorgan and Barclays - each to a value of 85k
Savings invested in Trading-212 totalling 85k (Cash ISA with funds split across NW, JPM, Barclays).
Essentially, directly and indirectly, there is more than 85k invested in NW, JPM and Barclays.

If one of NW, JPM, Barclays goes bust would the total invested in that bank be covered by FSCS (85k directly, plus some other amount <85k via Trading-212 Cash Isa)?

Thanks for your help. 

PRAISETHESUN

IcelandicWarrior said:

Hi, I've read a few of the threads on the FSCS cover for a Trading 212 cash ISA account but I'm still unclear regarding the following scenario:

Savings invested directly in Natwest, JPMorgan and Barclays - each to a value of 85k
Savings invested in Trading-212 totalling 85k (Cash ISA with funds split across NW, JPM, Barclays).
Essentially, directly and indirectly, there is more than 85k invested in NW, JPM and Barclays.

If one of NW, JPM, Barclays goes bust would the total invested in that bank be covered by FSCS (85k directly, plus some other amount <85k via Trading-212 Cash Isa)?

Thanks for your help. 

My understanding is that you get £85k protection per bank - this also includes any other savings with that bank either directly (eg. directly with Barclays) or indirectly (eg. with another e-money provider that uses Barclays to safeguard their customer money). So yes, if T212 were to evenly divide your savings between all 3 banks then you could in theory get £255k protection for your savings, however there's no guarantee they will do so or that the split won't change over time if they did.

eskbanker

IcelandicWarrior said:

Savings invested directly in Natwest, JPMorgan and Barclays - each to a value of 85k
Savings invested in Trading-212 totalling 85k (Cash ISA with funds split across NW, JPM, Barclays).
Essentially, directly and indirectly, there is more than 85k invested in NW, JPM and Barclays.

If one of NW, JPM, Barclays goes bust would the total invested in that bank be covered by FSCS (85k directly, plus some other amount <85k via Trading-212 Cash Isa)?

No, if any of the three banks actually holding the deposits went under, then the protection would be capped to £85K in total.

IcelandicWarrior

I just found this on Trading 212's site
"It's important to note that the £85,000 limit applies to the total amount of money you hold at each specific bank, whether it's deposited by Trading 212, other providers, or by you directly. For transparency, the percentage of your cash held at each bank is available in the app under the "Interest on Cash" tab."

So it seems an investor needs to track the split of investments by Trading 212 together with any funds directly saved with the partner banks and ensure that, to remain fully protected by FSCS, keep the total investment at any one of the individual banks to 85k.

eskbanker

IcelandicWarrior said:

So it seems an investor needs to track the split of investments by Trading 212 together with any funds directly saved with the partner banks and ensure that, to remain fully protected by FSCS, keep the total investment at any one of the individual banks to 85k.

Yes, exactly this.

Is this all hypothetical or do you have a very large pile of cash?

IcelandicWarrior

eskbanker said:

IcelandicWarrior said:

So it seems an investor needs to track the split of investments by Trading 212 together with any funds directly saved with the partner banks and ensure that, to remain fully protected by FSCS, keep the total investment at any one of the individual banks to 85k.

Yes, exactly this.

Is this all hypothetical or do you have a very large pile of cash?

I have enough to make sure I do not exceed the FSCS protected limit.