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Increase in fscs protection scheme?
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No_worries wrote: »Hi - I've not been here for ages and apologise if there's a hot thread elsewhere which I couldn't find BUT....
Is there any news of the £85,000 protection limit being raised? The new ISA limits from July mean it will be very easy to reach or exceed the £85,000 limit for those who have topped up efficiently each year to the max. No point the Govt offering a higher ISA allowance if it can't be protected?
given the last decade has actually SEEN bank failures, and that govt had to pay out, and prop up banks........
How much are you willing to pay in extra tax to finance this nanny state measure? Not that I am against a protection scheme, but given recent circumstance, and the way the country has suffered, why ask for more protection when you can spread your money?
Where has personal responsibility gone in this world?0 -
The current limit is already 2.5 times what is was in 2008.
While it's due for review at the end of 2015 that's more likely to take into account the £ / € exchange rate (the limit is, under EU directive, meant to be €100k) than just increase it for the sake of increasing it.0 -
People`s hard earned needs protecting from rogue and incompetent banks, full stop.
The banks are still making billions and still paying big bonuses.0 -
Since you have contributed to your new ISA in this tax year, there is no question of you being able to retain the new ISA and add money to your previous one, you are not permitted to do so.I appreciate this is going off topic of the original post but I've just opened a new ISA with a different provider to my existing one, into which I have already paid in the current maximum. I've only done a part transfer to the new one as they insist that you can only pay into one ISA in a year so when the limit increases next month I can only use that to contribute to my previous ISA.
Whether you do a partial transfer, a full transfer or no transfer of your previous ISA is completely irrelevant (because it does not contain contributions from the current tax year). You can only top up the new ISA into which you've already contributed this tax year.This is why I did not do a full transfer. I would have preferred to have done a full transfer and top up the new one in July.
You should have done a full transfer if you wanted all of your money moved to the new ISA. It wouldn't have affected your ability to continue paying money into it.
I doubt you've been given any incorrect info. It seems to me you've just misinterpreted the correct information.If anyone thinks I have been given incorrect info I'd appreciate a link to correct information.0 -
Nanny state? I can't see anything wrong with a state that requires businesses to insure against wreckless handling of depositors' funds. Especially since several of these businesses have demonstrated that they are perfectly capable of losing all their depositors' money and more.How much are you willing to pay in extra tax to finance this nanny state measure?
Ah right, so you actually want to be "nannied" (your words)Not that I am against a protection scheme
I am the first one calling for personal responsibility. But how would you suggest private depositors should go about getting their money back if a bank collapses and there is no "nanny" (your words) protection?Where has personal responsibility gone in this world?
If you were meant to say that people can today get more than £85K protection by spreading their money across a number of financial institutions, or even get 100% protection in NS&I should they so wish, that's a different matter. Nothing to do with nanny state. Probably just a lack of education / information.0 -
If you don't have some degree of protection, you get runs on banks, even banks that could have survived without the run, and the contagion spreads quickly.
The combination of the FSCS protection and the new B3 rules on Tier 1 capital ratios will help greatly in this regard, but only if the regulations are introduced carefully and then monitored well.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
If you were meant to say that people can today get more than £85K protection by spreading their money across a number of financial institutions, or even get 100% protection in NS&I should they so wish, that's a different matter. Nothing to do with nanny state. Probably just a lack of education / information.
That is what I meant, and nanny state would be to provide more than is currently available. And given you can get 170K on joint accts, and spread money thru different banking groups, those with 'hard earned' savings are well catered for under current rules. So you don't need higher protection.
In addition there are protections for share based accts like ISAs and for pensions.
As for those that need protection for their hard earned from banks, I think the banks need proper regulation and this seems to be ongoing, but I also expect them to make a profit. I don't hold a lot of bank shares personally, but I do know most people's pensions hold them. So expecting them not to make a profit means lower growth in your pensions.
Or there is the option of banking only with mutuals who have no shareholder to pay dividends to.0 -
No_worries wrote: »Hi - I've not been here for ages and apologise if there's a hot thread elsewhere which I couldn't find BUT....
Is there any news of the £85,000 protection limit being raised? The new ISA limits from July mean it will be very easy to reach or exceed the £85,000 limit for those who have topped up efficiently each year to the max. No point the Govt offering a higher ISA allowance if it can't be protected?
When the average person's savings are under £2k and 60%+ have £250 or under, even the current limit of £85k is irrelevant to most people.
If you are worried then there are plenty of ways to get round it but I'd question why anyone needs to have more than the limit with a couple of banks held in cash - obviously exceptions for buying house transactions but long term do you need more than say £200k in cash?Remember the saying: if it looks too good to be true it almost certainly is.0 -
People`s hard earned needs protecting from rogue and incompetent banks, full stop.
The banks are still making billions and still paying big bonuses.
Well yes, we are, but it's not from retail deposits, that's for sure.
I do wish people would stop conflating what people like me do (trading in an investment bank) with the relationship that they have online or with their local branch. I am buying and selling interest rate products, and getting a bonus (or not) based on all sorts of factors such as profit risk reduction, efficient capital usage, serving customers, and so on. I am not being paid by the £100 earned per annum from a current account sitting a few hundred thousand pounds in credit.0 -
Sooooo, at no point past or present has any of us minions deposits been at risk from financial institutions investment and trading activities?I do wish people would stop conflating what people like me do (trading in an investment bank) with the relationship that they have online or with their local branch.
It is the deposit assets which facilitate (not only I know) financial institutions to undertake their more risky trading / investment operations. This is why there have been calls for financial institution's to ring fence deposit operations from their far more risky trading arms.Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0
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