Are your savings safe? article discussion

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  • Thank you ColdIron
  • Hi guys, I understand FCS protection is £50k for stocks and shares ISA’s. I’ve got an ISA with Cavendish/Fidelity that will hopefully cross that value in due course, how concerned should I be about moving or splitting this up?

    I understand it doesn’t cover me in case of underlying funds losing value only for platform issues. I’m under the impression user funds are ringfenced and logged such that if Fidelity went bust I would be the registered owner of X units on the Vanguard so they would work their way back to me, but as ever it’s good to revisit these things.
  • Having read guidance I am having trouble applying it with my pooh brain....

    One institution....
    Joint current account - below FSCS limit
    Savings account sole name 1 - just below FSCS limit
    ISA sole name 2 - below FSCS limit

    Total funds across joint and sole accounts over single FSCS limit but below the doubled limit.

    How does this account configuration with one institution work? Presumably because of the joint current account we would have the double limit for protection but does that only apply to funds in the current account? If some of the funds are held in sole names in other accounts how are the rules applied?

    Thanks in advance.
  • murphydavid
    murphydavid Posts: 831
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    edited 8 October 2018 at 12:10PM
    kevvyb wrote: »
    Having read guidance I am having trouble applying it with my pooh brain....

    One institution....
    Joint current account - below FSCS limit
    Savings account sole name 1 - just below FSCS limit
    ISA sole name 2 - below FSCS limit

    Total funds across joint and sole accounts over single FSCS limit but below the doubled limit.

    How does this account configuration with one institution work? Presumably because of the joint current account we would have the double limit for protection but does that only apply to funds in the current account? If some of the funds are held in sole names in other accounts how are the rules applied?

    Thanks in advance.
    Add half the amount(s) in the joint account(s) to the amount in the highest sole account (or sum of sole accounts). If its below the allowance you would be compensated.
  • badger09
    badger09 Posts: 11,060
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    kevvyb wrote: »
    Having read guidance I am having trouble applying it with my pooh brain....

    One institution....
    Joint current account - below FSCS limit
    Savings account sole name 1 - just below FSCS limit
    ISA sole name 2 - below FSCS limit

    Total funds across joint and sole accounts over single FSCS limit but below the doubled limit.

    How does this account configuration with one institution work? Presumably because of the joint current account we would have the double limit for protection but does that only apply to funds in the current account? Yes, applies to balance in joint current account only If some of the funds are held in sole names in other accounts how are the rules applied?

    Thanks in advance.

    So:

    sole name 1
    if 1/2 joint current a/c balance + full sole savings a/c balance = below £85k, its all covered

    sole name 2
    if 1/2 joint current a/c balance + full ISA balance = below £85k, its all covered

    If either total exceeds £85k, then probably safest to move some of your cash.


    Do you really need that much in cash savings?
  • Just got an email from Virgin Money that says
    quote "if you have savings with Clydesdale Bank, Yorkshire Bank or B, and Virgin Money then your Financial Services Compensation Scheme protection level isn’t affected at all by the two businesses coming together"
    Is this true?
    If you now have a combined total of more than 85,000 adding funds you have with both institutions will it all be safe?

    ie are they now considered to be one institution by the FSCS?
  • RG2015
    RG2015 Posts: 5,755
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    If Virgin Money send you an email saying that the FSCS protection scheme level isn't affected at all by the two businesses coming together why would you not believe them?
  • murphydavid
    murphydavid Posts: 831
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    edited 15 October 2018 at 12:58PM
    RG2015 wrote: »
    If Virgin Money send you an email saying that the FSCS protection scheme level isn't affected at all by the two businesses coming together why would you not believe them?

    1. It is very unusual for one institution to have / keep PRA registration for separate subsidiaries. Do you know of one? I dont.

    2. How many banks are paying compensation for adjudged miss information at the moment?
    https://www.reprisk.com/content/5-publications/1-special-reports/51-ten-years-of-global-banking-scandals/repriskreport-banking.pdf

    BTW I did not say it was not true I asked a question!!
  • eskbanker
    eskbanker Posts: 29,932
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    1. It is very unusual for one institution to have / keep PRA registration for separate subsidiaries. Do you know of one? I dont.
    As mentioned in the article that this thread is about, RBS, NatWest and Ulster have separate FSCS protections despite being subsidiaries within the same group.
  • RG2015
    RG2015 Posts: 5,755
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    1. It is very unusual for one institution to have / keep PRA registration for separate subsidiaries. Do you know of one? I dont.

    2. How many banks are paying compensation for adjudged miss information at the moment?
    https://www.reprisk.com/content/5-publications/1-special-reports/51-ten-years-of-global-banking-scandals/repriskreport-banking.pdf

    BTW I did not say it was not true I asked a question!!
    If you had asked the question after hearing the news but without the benefit of the email it would have made more sense.

    In my opinion, VM has acted very responsibly by informing their customers so quickly on the official date of the merger/takeover. This hardly is the action of a bank that is not to be trusted.
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