Are your savings safe? article discussion

coal

If I had £30,000 in premium bonds and £15,000 in post office saving account would all money be safe? Are they treated as separate?

notahopeinhell

A simple question really I have just invested some money in a Bradford and Bingley 6 month Fixed Rate Bond (not stocks and shares) and wonder if this type of saving account is also covered by the FSC scheme?

Meltdown_2

coal wrote: »

If I had £30,000 in premium bonds and £15,000 in post office saving account would all money be safe? Are they treated as separate?

Premium bonds are operated through National Savings & Investments (i.e. the British Government, effectively).
Post Office savings accounts are operated by the Bank of Ireland.

arty4

notahopeinhell wrote: »

A simple question really I have just invested some money in a Bradford and Bingley 6 month Fixed Rate Bond (not stocks and shares) and wonder if this type of saving account is also covered by the FSC scheme?

yes. (why shouldn't it be?)

notahopeinhell

arty4 wrote: »

yes. (why shouldn't it be?)

Wasn't sure so just asking. Thanks.

Jane.tweedynn

No one has defined Set-Off in terms of debts to savings.

I have a mortgage with my partner of £100,000, mortgage in joint names.

I have savings of £160,000 in own name.

My partner has savings of £35,000 and credit card debt of £50,000 in own name.

If the savings accounts are in separate names, whereas the mortgage is in joint names, can these be set-off? and determine order and percentage of set-off.

Meltdown_2

The following appears in Martin's latest (29 April) weekly Money Tips email.
I thought it useful to copy it into this thread (for reference).
I hope that's OK with him.

[FONT=Arial,Helvetica,sans-serif]Correction.
Are your savings safe? Debts & Savings ARE fully set-off against each other
A fortnight ago, I provided confirmation from officials at the Financial Services Compensation Scheme (FSCS) about what would happen in the unlikely event a bank collapsed and you had both debts & savings with it. Yet the FSCS was wrong, and has now admitted the mistake. The correct explanation is if you have any savings these are subtracted from debts (e.g. mortgages, cards, loans). So if you had £200,000 debt and £150,000 savings, and the bank went bust you'd owe them £50,000. Before, we'd been told only the £35,000 of savings that were protected by the scheme would count, so you’d have owed £165,000. [/FONT]
[FONT=Arial,Helvetica,sans-serif]Full Article: Are Your Savings Safe?

[/FONT]

silvercar

The following appears in Martin's latest (29 April) weekly Money Tips email.
I thought it useful to copy it into this thread (for reference).
I hope that's OK with him.

Quote:

Correction.
Are your savings safe? Debts & Savings ARE fully set-off against each other
A fortnight ago, I provided confirmation from officials at the Financial Services Compensation Scheme (FSCS) about what would happen in the unlikely event a bank collapsed and you had both debts & savings with it. Yet the FSCS was wrong, and has now admitted the mistake. The correct explanation is if you have any savings these are subtracted from debts (e.g. mortgages, cards, loans). So if you had £200,000 debt and £150,000 savings, and the bank went bust you'd owe them £50,000. Before, we'd been told only the £35,000 of savings that were protected by the scheme would count, so you’d have owed £165,000.
Full Article: Are Your Savings Safe?

Do you have a link for this, I can't find it on the FSCS website.

Meltdown_2

silvercar,
I'm not sure who you are expecting to answer your query ...
I cannot, because all I am doing is reposting an extract from Martin's 'weekly tips' email.
Martin presumably can't (as yet) or he (or one of his team) wouldn't have had to contact the FSCS to clarify things.
Whether or not the FSCS intend to update their website to reflect what they have now told MSE ... well who knows? ... but are you expecting them to be members of this forum?

silvercar

I thought Martin was quoting from the FSCS and wondered if it was on their website or press release.

My timing is bad, playing safe I have just paid a lump sum off the mortgage (irretrievable) to reduce the offset balance.