Maximum deposit to put in a bank account which will not exceed the £85K

wmb194

ivormonee said:

Ch1ll1Phlakes said:

Yes interest is due up to default of the firm in question. Here's what the interest and savings manual says along with a link SAIM2090 - Interest: interest payable from the Financial Services Compensation Scheme: examples - HMRC internal manual - GOV.UK

Thanks for the very useful link. It certainly indicates accrued interest is included.

It seems to me that providers don't understand this. 

For example, https://www.moneyboxapp.com/fscs-protection/ states:
Any interest which is due but not paid is not protected by FSCS.

And, https://www.moneyboxapp.com/learn/saving/articles/cash-isa-monthly-interest-payments-faqs/ states:

Switching from annual to monthly interest payments means more of your money is FSCS protected, as when interest is paid out, it’s covered by the Financial Services Compensation Scheme (FSCS).

How strange.

Moneybox is an outlier, isn’t it? It’s been discussed in other threads; its interest is more like a ‘bonus’ and only classed as interest when it’s paid.

masonic

ivormonee said:

Ch1ll1Phlakes said:

Yes interest is due up to default of the firm in question. Here's what the interest and savings manual says along with a link SAIM2090 - Interest: interest payable from the Financial Services Compensation Scheme: examples - HMRC internal manual - GOV.UK

Thanks for the very useful link. It certainly indicates accrued interest is included.

It seems to me that providers don't understand this. 

For example, https://www.moneyboxapp.com/fscs-protection/ states:
Any interest which is due but not paid is not protected by FSCS.

And, https://www.moneyboxapp.com/learn/saving/articles/cash-isa-monthly-interest-payments-faqs/ states:

Switching from annual to monthly interest payments means more of your money is FSCS protected, as when interest is paid out, it’s covered by the Financial Services Compensation Scheme (FSCS).

How strange.

MoneyBox is an aggregator, not a bank or other deposit taker. Your money is deposited into accounts with various third party banks, but those banks have no agreement with you for payment of interest. MoneyBox gets the benefit of any interest paid by the third party banks, and separately has an agreement with you to pay you interest at a certain rate on the funds you have deposited into its accounts with these third party banks. If one of the banks fails, your FSCS claim can only include what the bank owes you (not what MoneyBox owes you). The bank only owes the balance you held in the account at the date of the failure.

This is one of the differences between aggregators and normal deposit accounts.