New FSCS deposit protection limit

wmb194

So the FSCS protection for investments remains at £85k? I don't see any mention that this is changing as well.

Ch1ll1Phlakes

wmb194 said:

So the FSCS protection for investments remains at £85k? I don't see any mention that this is changing as well.

Seems so. There's no mention of a change to this on the FSCS website

Scot_39

eskbanker said:

BreakingGlass said:

Hopefully this will drive some small interest rate rises as savings institutions compete for the extra £35k. 

Seems unlikely - the number of people with savings of six figures currently split across multiple institutions will be pretty small to start with, and I'd expect the amount of incremental movement triggered by the limit increase to be insignificant relative to all the other factors driving interest rates....

Generosity may be affected in the other direction by the estimated increase of £67m in the levy used to fund the guarantee!

There are normally only a few "high" rate accounts in some catagories - then a lot of middling then many poor (most in High St institutions).

Anyone with a lot on deposit - who has stuck to the limits - might be tempted to move more money to those accounts at the top of league tables - and close or reduce balance on others - forcing others to compete more for cash.

Dragging I suspect average rather than peak rates up.

Assuming demand for lending like on mortgages returns after the budget.

eskbanker

Scot_39 said:

eskbanker said:

BreakingGlass said:

Hopefully this will drive some small interest rate rises as savings institutions compete for the extra £35k. 

Seems unlikely - the number of people with savings of six figures currently split across multiple institutions will be pretty small to start with, and I'd expect the amount of incremental movement triggered by the limit increase to be insignificant relative to all the other factors driving interest rates....

Generosity may be affected in the other direction by the estimated increase of £67m in the levy used to fund the guarantee!

There are normally only a few "high" rate accounts in some catagories - then a lot of middling then many poor (most in High St institutions).

Anyone with a lot on deposit - who has stuck to the limits - might be tempted to move more money to those accounts at the top of league tables - and close or reduce balance on others - forcing others to compete more for cash.

Dragging I suspect average rather than peak rates up.

Assuming demand for lending like on mortgages returns after the budget.

Yes, I'm sure that some people will move some money, but remain unconvinced that such transfers will actually be enough to move the dial on rates.  Time will tell though, but it'll be difficult to monitor any effect on rates in a controlled way, given the forthcoming budget, which seems rather more likely to affect the financial landscape....

Marmaduke123

I'm glad about this increase. I was gambling on the rumours being correct as I've had over the current limit with one high street bank since the beginning of November. Not that I think they could have gone under - "too big to fail"!

Futuristic

BreakingGlass said:

Hopefully this will drive some small interest rate rises as savings institutions compete for the extra £35k. 

Actually I’m surprised saving rates have gone up, latest data showing 79% chance of rate cut next month. This was 46% in October. 

subjecttocontract

Marmaduke123 said: Not that I think they could have gone under - "too big to fail"!

So was the Titanic.

Bigwheels1111

Chase Bank email, just now.

The Financial Services Compensation Scheme (FSCS) is increasing the protection limit on your eligible deposits from £85,000 to £120,000 from 1 December 2025.

This means their Deposit Guarantee Scheme will repay you up to £120,000 of your eligible deposits, in the unlikely event that something happens to Chase.

Don’t worry, there’s nothing you need to do – it’s automatically updated for you.

Got any questions about how the FSCS protection works?

We’ve got more info on the FSCS scheme, which deposits are eligible and how it may apply to you in our FCSC protection page. We’re also here 24/7 to answer any questions you’ve got – just get head to the Chase app to get in touch.

All the best,

masonic

Bigwheels1111 said:

Chase Bank email, just now.

The Financial Services Compensation Scheme (FSCS) is increasing the protection limit on your eligible deposits from £85,000 to £120,000 from 1 December 2025.

This means their Deposit Guarantee Scheme will repay you up to £120,000 of your eligible deposits, in the unlikely event that something happens to Chase.

Don’t worry, there’s nothing you need to do – it’s automatically updated for you.

Got any questions about how the FSCS protection works?

We’ve got more info on the FSCS scheme, which deposits are eligible and how it may apply to you in our FCSC protection page. We’re also here 24/7 to answer any questions you’ve got – just get head to the Chase app to get in touch.

All the best,

Oh dear, "FCSC protection page". 

eskbanker

masonic said:
Oh dear, "FCSC protection page". 

Amazing how often that's erroneously used, isn't it (but you'd expect better from an institution)!  Probably even more frequently than the references on here to the likes of 'FSA' and 'Hargreaves and Lansdown'....