Savings "Protection"?? changes on way

ipri

Hi...as predicted changes on way to safegaurd savings....Has anyone seen any more details of what may be in the pipeline??

Aegis

I thought that it was just an increase to the maximum protected level to either £50000 or £100000. Personally I think the former is a better bet because that won't result in a fairly large drop in the interest rates we can expect from the banks.

neilp

I'm not sure whether that is actually going to happen. It is no accident that everyone in government has gone quiet on this since soon after the run on Northern Rock. Having said that, Darling's guarantee to Northern Rock depositors could be taken as an implicit guarantee that the government will act to protect deposits in the event of future bank distress.

Mikeyorks

It's too late to research it, for links - but there are two elements under consideration. The first is the increase in protection of deposits from the current £35k. The second is to consider the viability of 'seizing' (for want of a better word) the cash assets of depositors in order they have orderly but timely access to them. In order to combat a repeat of the queues outside Branches and allegations of a deliberately spiked online system - which were a feature of NR.

Hopefully - all unnecessary.

YorkshireBoy

Aegis wrote: »

Personally I think the former is a better bet because that won't result in a fairly large drop in the interest rates we can expect from the banks.

The last time I suggested that may happen it was poo-poo'd (sp?) by those 'in the know'. It was stated that the levy paid/required was so small it wouldn't impact on savings (or mortgage) rates offered.