Are your savings safe? article discussion

chris1

MSE_Dan wrote: »

...the Chancellor announced plans to increase the limit from £35,000 per person per institution to £50,000. This is subject to further consultation but is likely to pass through parliament in August 08.

Much as I hate to disagree with 'the management', I don't think it's going to happen that quickly. The consultation period doesn't end until mid-September, then there will no doubt be several weeks of whatever-it-is-they-have-to-do before it becomes law...

Former_MSE_Dan

ah thanks chris - that is meant to be Autumn - will change

alared

Darling said originally at the time of the NR debacle that he would protect savers up to the first £100 k.
This has now been cut to half, and from reports on the media,unlikely to happen `til spring next year,assuming this lot haven`t been turfed out by then.
So in the meantime,until it is actually implemented,caution is the word.

Looking and listening to Darling doesn`t exactly inspire very much confidence that anything will actually get done.

researchmug

A friend of my wifes noticed that the small print for the northern rock e-saver only offers protection up to the standard 35k

Why if the government protects the full amount would their small print say different?

Could martin be wrong!?!!

surely not.

I tried to find some way of contacting the team directly about what might be a problem with their safe savings article, but there is no way of contacting them directly.

isofa

Considering the cost of living today, a potential protection increase to 50K is laughable, as is the government in all money matters.

jamesd

isofa, it'll be 100% protection for about 90% of depositors.

Still only about 60% of all money deposited because of those with large deposits.

earlgrey_3

researchmug wrote: »

A friend of my wifes noticed that the small print for the northern rock e-saver only offers protection up to the standard 35k

Why if the government protects the full amount would their small print say different?

Could martin be wrong!?!!

surely not.

I tried to find some way of contacting the team directly about what might be a problem with their safe savings article, but there is no way of contacting them directly.

The FSCS scheme protects savings in NR just as in other banks up to £35,000. But NR is now nationalised and owned by the state so HM government is responsible for the lot irrespective of the FSCA guarantee.

Laughing_Boy

I have money invested in various funds in a personal pension and am wondering if the investment is protected in the event of the individual fund managers going bust. I think pension funds may be protected by more than the £35K which applies to bank/building society savings, but can anyone confirm this?

chris1

Laughing_Boy wrote: »

I have money invested in various funds in a personal pension and am wondering if the investment is protected in the event of the individual fund managers going bust. I think pension funds may be protected by more than the £35K which applies to bank/building society savings, but can anyone confirm this?

Apparently pensions savings such as funds in a SIPP come under 'investments' and are covered up to £48,000 per person, 100% of the first £30,000 and 90% of the next £20,000. That's per SIPP.

polyphonic99

As usual the "quality press" and most of the media ignore pertinent issues. Maybe their financial journalists aren't very bright.

The merger of the Nationwide, Derbyshire and Cheshire Building societies means the loss of 3 lots of security under the FSCS (Financial Services Compensation Scheme), from a total of £105,000 down to one lot of £35,000. The derbyshire and Chesire will lose their FSA registration when they merge with Nationwide. If you are already a saver with 2 or 3 of these institutions, with a savings in excess of £35,000 then it would be sensible to redistribute your savings over the £35,000 to other societies before the mergers are complete on 1 Decmeber 2008. If you have fixed rate bonds or other term accounts then basically - you are stuffed. You cannot move them so you have a potential risk (though very small I would think) if the Nationwide has problems. Nice of the FSA to give you the potential risk though (aren't they meant to be protecting savers and investor?).

The regulations regarding mergers and fixed term accounts need to be reviewd so thet the terms of fixed rate account are relaxed, allowing you to access your funds if a merger takes place.