Financial Services Compensation Scheme

[Hope]

"The FSCS currently protects the first £85,000 of eligible deposits a person holds with a bank or building society. From 1 January 2016, the FSCS protection limit will reduce to £75,000. " (From email from my bank)

"From 1 January 2016 deposit limit for bank accounts will be £75,000, and £150,000 for joint accounts. The £75,000 figure is the sterling equivalent of €100,000 as required by the recast Deposit Guarantee Schemes Directive." (http://bit.ly/1KOUkji - FSCS website)

Does anyone know any reason for this reduction? 

[ekim]

I believe it is a European Union Directive but I don't know what they base it upon.

[Nearly Sane]

The euro went down against sterling for the period measured. It's the 100k euro amount that drives it.

[Nearly Sane]

This outlines the process



http://www.yourmoney.com/news/fscs-deposit-protection-reduced/

[floo]

"The FSCS currently protects the first £85,000 of eligible deposits a person holds with a bank or building society. From 1 January 2016, the FSCS protection limit will reduce to £75,000. " (From email from my bank)

"From 1 January 2016 deposit limit for bank accounts will be £75,000, and £150,000 for joint accounts. The £75,000 figure is the sterling equivalent of €100,000 as required by the recast Deposit Guarantee Schemes Directive." (http://bit.ly/1KOUkji - FSCS website)

Does anyone know any reason for this reduction?

We got a letter from the bank informing us of this change, which is a real nuisance!

[Hope]

Reaction to the news has been largely negative. Andrew Tyrie MP, chairman of the Treasury Select Committee, told the BBC that the move was “defective.”

“It’s absurd that a depreciation of the euro – largely brought about by the crisis in the eurozone in general, and the Greek crisis in particular, should be forcing a reduction in the level of protection available to UK depositors.”

I think that this sums up my opinion.  I assume that it also impacts on charities who may have sums of money well in excess of the limit that has been set aside as a contingency for any particular disaster?  Having multiple bank accounts to avoid this problem - with all the charges that this could involve would seem to go against the Charity Commission's instructions that a charity stewards its money as effectively as possible.

[Nearly Sane]

Your opinion and Tyrie's opinion are mince then. Nothing has chsngrd, these were the rules that said 85,000 sterling previously. Did you object then? I'll let you off but Tyrie is either parading his ignorance or lying.

[ippy]

"The FSCS currently protects the first £85,000 of eligible deposits a person holds with a bank or building society. From 1 January 2016, the FSCS protection limit will reduce to £75,000. " (From email from my bank)

"From 1 January 2016 deposit limit for bank accounts will be £75,000, and £150,000 for joint accounts. The £75,000 figure is the sterling equivalent of €100,000 as required by the recast Deposit Guarantee Schemes Directive." (http://bit.ly/1KOUkji - FSCS website)

Does anyone know any reason for this reduction?

It'll badly affect you then Hope, if anything happens?

ippy

[Hope]

It'll badly affect you then Hope, if anything happens?

ippy

It potentially affects just about anyone who sells a property and has to put the money into an account whilst waiting for the money to be distributed (under the terms of a will, for instance), or for the signature on a contract for a new property.

[jeremyp]

"The FSCS currently protects the first £85,000 of eligible deposits a person holds with a bank or building society. From 1 January 2016, the FSCS protection limit will reduce to £75,000. " (From email from my bank)

"From 1 January 2016 deposit limit for bank accounts will be £75,000, and £150,000 for joint accounts. The £75,000 figure is the sterling equivalent of €100,000 as required by the recast Deposit Guarantee Schemes Directive." (http://bit.ly/1KOUkji - FSCS website)

Does anyone know any reason for this reduction?

We got a letter from the bank informing us of this change, which is a real nuisance!

Why? Are you expecting your bank to go tits up?

[jeremyp]

It'll badly affect you then Hope, if anything happens?

ippy

It potentially affects just about anyone who sells a property and has to put the money into an account whilst waiting for the money to be distributed (under the terms of a will, for instance), or for the signature on a contract for a new property.

You should have read the link in the OP. Real estate transactions qualify for the temporary high balance limit of £1,000,000.

[ippy]

It'll badly affect you then Hope, if anything happens?

ippy

It potentially affects just about anyone who sells a property and has to put the money into an account whilst waiting for the money to be distributed (under the terms of a will, for instance), or for the signature on a contract for a new property.

I do understand what it is you're saying Hope, I only intended the gentlest wind of the handle, you're right of course, 'Tories', there are better words to describe them than Tories.

Underhanded nibbling around the edges, nothing new there, hoping nobody notices, although I'm sure politicians don't think like or do things like that.

ippy

[Hope]

... 'Tories', there are better words to describe them than Tories.

Unfortunately, as things stand, even the SNP couldn't have stopped the reduction.  The EU legislation originally setting this system up states a maximum of 100K Euros, and with a change in the sterling/Euro exchange rate coinciding with the 5-yearly review, that 100K is now only worth £75K

[ippy]

... 'Tories', there are better words to describe them than Tories.

Unfortunately, as things stand, even the SNP couldn't have stopped the reduction.  The EU legislation originally setting this system up states a maximum of 100K Euros, and with a change in the sterling/Euro exchange rate coinciding with the 5-yearly review, that 100K is now only worth £75K

I see you study this more than I do, I try to keep away from politics as much as poss, because it winds me up when I see how duplicitous they are with everything they say or do.

I get you, it's to more to do with exchange rates, lets hope we return to what was voted for the EEC, in the original referendum, mind you that slippery lot will still find ways of bypassing anything that doesn't suit them, whatever we vote for.

ippy   

[jeremyp]

... 'Tories', there are better words to describe them than Tories.

Unfortunately, as things stand, even the SNP couldn't have stopped the reduction.  The EU legislation originally setting this system up states a maximum of 100K Euros, and with a change in the sterling/Euro exchange rate coinciding with the 5-yearly review, that 100K is now only worth £75K

So, by the same logic, if the Euro happens to be strong when the five yearly review comes up (as it probably was last time), then the limit goes up, but we don't hear people complaining then, do we.