Just a thought. The Chancellor has said that the government will guarantee the first £35k of any deposit account. Is this law? Where is it documented? Are we simply to take the word of the Chancellor? Just where does the guarantee lie?
Bob
Full Version: Where Is The £35k Bank Deposit Guarantee Documented?
QUOTE (Bob15950 @ Mar 20 2008, 03:39 PM) 
Just a thought. The Chancellor has said that the government will guarantee the first £35k of any deposit account. Is this law? Where is it documented? Are we simply to take the word of the Chancellor? Just where does the guarantee lie?
http://www.fscs.org.uk/.
The compensation scheme isn't a new thing -- it hasn't just been around since Northern Rock's troubles last year.
EDIT: Just nosing around the FSCS site, I can only see the compensation rules that applied prior to the NR situation (namely: 100% of the first £2k, plus 90% of a further £33k), rather than what I believed it to be since NR (100% of £35k).
FURTHER EDIT: Here's another link that may be useful: http://www.moneysavingexpert.com/savings/safe-savings.
QUOTE (Ologhai Jones @ Mar 20 2008, 03:46 PM)
http://www.fscs.org.uk/.
The compensation scheme isn't a new thing -- it hasn't just been around since Northern Rock's troubles last year.
EDIT: Just nosing around the FSCS site, I can only see the compensation rules that applied prior to the NR situation (namely: 100% of the first £2k, plus 90% of a further £33k), rather than what I believed it to be since NR (100% of £35k).
FURTHER EDIT: Here's another link that may be useful: http://www.moneysavingexpert.com/savings/safe-savings.
The compensation scheme isn't a new thing -- it hasn't just been around since Northern Rock's troubles last year.
EDIT: Just nosing around the FSCS site, I can only see the compensation rules that applied prior to the NR situation (namely: 100% of the first £2k, plus 90% of a further £33k), rather than what I believed it to be since NR (100% of £35k).
FURTHER EDIT: Here's another link that may be useful: http://www.moneysavingexpert.com/savings/safe-savings.
...found something now, thanks for the steer.
http://www.fscs.org.uk/consumer/How_to_Claim/
It is up to £35k. However....it may take some time to use it should the crunch come. It's a good time buffer to slow down depositors but not exactly 'on demand' safe for them. You may have to wait for bankrupcy proceedings, litigation etc. It could take years to get one's money back. The FSGS funds come from a 0.3% per annum levy on the banks. That's not enough by any stretch of the imagination to bail out just one bank's depositors.
http://search.treasury.gov.uk/search?p=R&a...ainresult%5fyes
Also, have a look at the above link. You're looking for 'Financial stability and depositor protection: strengthening the framework January 2008' (its a long link, good ploy to screw up and put you off) The government are in 'consultation', due to end in April. About 95% of depositors fit the under £35k limit. However they account for only 50% of the value of deposits. The other 50% are less than fully protected. Average UK bank liquidity is 3%. It wouldn't take many of the rich 'at risk' depositors to pull out and take a bank down. It's the loyal infrantry that always suffer.
Hmmmm...byeeeeeeee
QUOTE (Ologhai Jones @ Mar 20 2008, 03:46 PM)
http://www.fscs.org.uk/.
The compensation scheme isn't a new thing -- it hasn't just been around since Northern Rock's troubles last year.
EDIT: Just nosing around the FSCS site, I can only see the compensation rules that applied prior to the NR situation (namely: 100% of the first £2k, plus 90% of a further £33k), rather than what I believed it to be since NR (100% of £35k).
FURTHER EDIT: Here's another link that may be useful: http://www.moneysavingexpert.com/savings/safe-savings.
The compensation scheme isn't a new thing -- it hasn't just been around since Northern Rock's troubles last year.
EDIT: Just nosing around the FSCS site, I can only see the compensation rules that applied prior to the NR situation (namely: 100% of the first £2k, plus 90% of a further £33k), rather than what I believed it to be since NR (100% of £35k).
FURTHER EDIT: Here's another link that may be useful: http://www.moneysavingexpert.com/savings/safe-savings.
I think that it is supposed to guarantee 90% of the next £20,000 as well.
Where the hell do they dream these figures up from ?
QUOTE (scooby7346 @ Mar 20 2008, 07:58 PM)
I think that it is supposed to guarantee 90% of the next £20,000 as well.
Where the hell do they dream these figures up from ?
Yes, I saw this page yesterday. Although it sort of implies 100% of £35k, it doesn't simply say 100% anywhere (that I could see anyway) -- which given that, prior to Oct '07, there was only partial compensation, would've removed any confusion.
I've not heard about the extra £20k thing.
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