Savings. How much is protected if company goes bankrupt?

19
Found 27th Sep 2008
Hi All

Sadly i have recently been made redundant .. Awww.

Anyway I have recently opened a bank abount with kaupthing edge and i was curious how much money is protected if for some reason that company went bankrupt.

A friend of mine said your first 30k is protected but i couldnt find anything concrete. Some website said first 2k is 100% protected and the next 33k is 90% protected.

Any help much appreciated.

Regards

Clint

P.s. Does it matter if compay is not english?

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Banned

35k i think

sassie;3066007

35k i think


agreed.

Sorted my thingout with Amazon Sassie:thumbsup:.

Its £35,000-but its in total, not per account.

Also, you need to watch out for banks in the same group-you might not be covered by each bank.

lucerysmum;3066095

Its £35,000-but its in total, not per account.Also, you need to watch out … Its £35,000-but its in total, not per account.Also, you need to watch out for banks in the same group-you might not be covered by each bank.



Just to clarify that point...

For example the HBOS group (Halifax and Bank Of Scotland) If you hade 35k in one account in each of those you would only be covered by 35k.

However if you had 35k in an account of HBOS and 35k in Barclays you would have 70k total covered.

Spread your money throughout different institutions, not just different banks.

BFM

THE Financial Services Compensation Scheme (FSCS) guidelines are detailed here as some guides are misleading:

fscs.org.uk/con…ts/

Compensation Limits

The maximum levels of compensation are:




[LIST]
[*]Deposits: £35,000 per person (for claims against firms declared in default from 1 October 2007).

100% of the first £35,000.*[/LIST]
[LIST]
[*]Investments: £48,000 per person.

100% of the first £30,000 and 90% of the next £20,000.[/LIST]
[LIST]
[*]Mortgage advice and arranging: £48,000 per person (for business conducted on or after 31 October 2004).

100% of the first £30,000 and 90% of the next £20,000.[/LIST]
[LIST]
[*]Long-terminsurance (e.g. pensions and life assurance):unlimited.

100% of the first £2,000 plus 90% of the remainder of the claim.[/LIST]
[LIST]
[*]General insurance: unlimited.

Compulsory insurance (e.g. third party motor): 100% of the claim. Non-compulsory insurance (e.g. home and general): 100% of the first £2,000 plus 90% of the remainder of the claim.[/LIST]
[LIST]
[*]General insurance advice andarranging:unlimited (for business conducted on or after 14 January 2005). 100% of the first £2,000 plus 90% of the remainder of the claim. Compulsory insurance is protected in full.[/LIST]
* The FSA changed the rules that govern compensation payments on 1 October 2007 to increase the total limit to £35,000.For deposit claims against firms declared in default before 1 October 2007, the maximum level of compensation is £31,700 (100% of £2,000 and 90% of the next £33,000).
Depositors may still receive a share of their savings above £35,000 back following any distribution of assets as part of the insolvency process for a failed bank. This would be a matter for the insolvency practitioner to determine and any recovery would, by necessity, vary according to the circumstances of the specific failure.
The actual level of compensation you receive will depend on the basis of your claim. FSCS only pays compensation for financial loss.
Compensation limits are per person (per firm and type of claim).
Slightly different limits and rules apply if you have a claim against an insurer or a bank that was insolvent before FSCS became operational (1 December 2001), or if your claim is against an investment firm that was declared in default before FSCS became operational.

You are safer if you spread your money around. It is £35,000 per account, but not with the same bank. We are going to do this after watching a news item on News24.

Back to original post and question see kaupthingedge.co.uk/hel…=03

Yes. Your money will be held by Kaupthing Singer & Friedlander Ltd. … Yes. Your money will be held by Kaupthing Singer & Friedlander Ltd. Furthermore, your deposit will be protected under the UK Financial Services Compensation Scheme, which can pay compensation (currently up to £35,000) where a firm is unable to pay claims against it. For further details refer to [url]www.fscs.org.uk[/url]

You may like to know that if you save in a post office account there is much higher protection, equivalent to 100,000 euro,(nigh on £80,000).
This is because the post office accounts are run by the Bank of Ireland and they have recently increased the protection they offer.

I have just checked The Instant Saver Account at the post office and it tells a different story, can you provide details on the enhanced guarantee.

postoffice.co.uk/por…524

Financial Services Compensation Scheme^Currently the account sign in tool … Financial Services Compensation Scheme^Currently the account sign in tool is only accessible to customers who have Internet Explorer 6 and above. Your account can still be accessed by phone, by post, at 60,000 ATM’s and at over 13,000 Post Office® branches.Bank of Ireland is a member of the Financial Services Compensation Scheme established under the Financial Services and Markets Act 2000. In respect of deposits with a UK office, payments under the scheme are limited to 100% of the first £35,000 of a depositor's total deposits with the bank. Most depositors, including individuals and small firms, are covered. The Scheme covers deposits made with the offices of the bank within the European Economic Area and deposits denominated in all currencies are treated alike. Further details of the Scheme are available on request.*Calls may be monitored and recorded for training purposes. Local call rates apply. Call costs may vary depending upon your service provider. Bank of Ireland is authorised by the Financial Regulator in Ireland and by the Financial Services Authority; regulated by the Financial Services Authority for the conduct of UK Business. Bank of Ireland subscribe to the Banking Code. A copy of the code is available on request. Bank of Ireland, 1 Donegall Square South, Belfast, BT1 5LR.

Its £35k PER PERSON as well, so if you have a joint account with a partner then you are covered up to £70k with that financial institution

Has this ever been used in this past?
Something that worries me with it is that there is no precedent (unless someone corrects me?) of the protection being called, so it is not known how long before any funds will be returned?

Original Poster

Thanks to all your replies much appreciated. Was worried about having cash for the first time in a long while and something go pear shaped. Rep for all cheers!!:thumbsup:

timber;3067082

I have just checked The Instant Saver Account at the post office and it … I have just checked The Instant Saver Account at the post office and it tells a different story, can you provide details on the enhanced guarantee.http://www.postoffice.co.uk/portal/po/content1?catId=23200510&mediaId=23300524




]There is an article here that talks about the recent improvment. "Changes to the saver protection scheme in Ireland mean Post Office saving accounts are now protected for up to nearly £80,000"
I expect that the PO have yet to change all their Ts & Cs.
Hope this reassures you:thumbsup:

Many thanks melipona for the response appreciated:thumbsup: rep given

Banned

a bit worrying is the fact that they state 'the maximum payable' and 'up to'.

Is this a subtle get out clause?

csiman;3068062

a bit worrying is the fact that they state 'the maximum payable' and 'up … a bit worrying is the fact that they state 'the maximum payable' and 'up to'.Is this a subtle get out clause?



No. It just means means "you are protected upto £35,000, but not after that"...

As for the OP's question about foreign banks - Kaupthing edge is protected by the £35,000 scheme.

HOWEVER, some foreign banks work on a "passport" scheme where they are just treated as having branches here. In this case, you'll still be protected for £35,000 but you will be expected to claim back the maximum amount you can claim from that country's government before getting it topped up by ours to the full £35,000. This could potentially delay any payment to you of your funds by several months. Thankfully, Kaupthing Edge isn't one of these banks and is fully protected by the UK scheme.

duckmagicuk2;3068089

No. It just means means "you are protected upto £35,000, but not after … No. It just means means "you are protected upto £35,000, but not after that"...As for the OP's question about foreign banks - Kaupthing edge is protected by the £35,000 scheme.HOWEVER, some foreign banks work on a "passport" scheme where they are just treated as having branches here. In this case, you'll still be protected for £35,000 but you will be expected to claim back the maximum amount you can claim from that country's government before getting it topped up by ours to the full £35,000. This could potentially delay any payment to you of your funds by several months. Thankfully, Kaupthing Edge isn't one of these banks and is fully protected by the UK scheme.



Not anymore

KE has gone bust and its saving business bought out by ING - which is regulated under Duych law.

Therefore KE savins accounts will or have become classed as so called passport accounts as mentioned by DM

EliTom
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