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flash harry

Business Bank Protection Laws

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Hi everyone,

I understand there is certain protection built into the system for money in bank accounts of bankrupt banks (£35,000 I think). Does anybody know if this applies to business accounts as well. I've got my business account with A+L and am getting nervous. Not quite sure how I go about transfering accounts to a different bank.

FH

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Are you a limited company or a sole trader? I looked into this and although it was unclear it did appear that limited companies were not covered.

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How about a joint account, i.e. husband and wife?

I honestly don't know.

Are you a limited company or a sole trader? I looked into this and although it was unclear it did appear that limited companies were not covered.

I run a LTD and an LLP. I found that PDF when looking for an answer to flash harry's question and I was focused on the "Per person (per firm and type of claim)" wording, so it's best guess.

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I bank with them for my Ltd company and the thought had never crossed my mind that i would not be covered. I have sent a secure message and will post back the reply.

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Financial Services Compensation Scheme PDF

According to Page 11, it says that £35,000 is covered Per person (per firm and type of claim). Compensation only covers financial loss.

So, thankfully, yes. To a point.

Caveat lector: 'per firm' could well mean 'per banking firm' given the way the sentence is organised.

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I bank with them for my Ltd company and the thought had never crossed my mind that i would not be covered. I have sent a secure message and will post back the reply.

Hi Crown,

Would be much appreicated as I'm in the same position i.e ltd company. The wording in the pdf is very ambigous and only references 'firms' in some scenaros.

FH

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Put it this way......can you imagine a senario in which a bank failed and lets say Tesco held their account there.......

The governemt would be faced with two senarios:

1. Let the bank fail and honour the 35k guarantees.

2. Print the cash and pay everyone.

What would you choose? I think we are all safe from bank failure. The big worry is inflation.

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Hi everyone,

I understand there is certain protection built into the system for money in bank accounts of bankrupt banks (£35,000 I think). Does anybody know if this applies to business accounts as well. I've got my business account with A+L and am getting nervous. Not quite sure how I go about transfering accounts to a different bank.

FH

Take heart! If you are genuinely self-employed, rather than a contractor to a single client, you are well placed. If banks go down the pan, there will be a lot of people out of work in dog eats dog environment. Most will have no experience of anything other than being told what to do and receiving a monthly salary. You will be able to survive and probably do rather well.

p-o-p

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Hi Crown,

Would be much appreicated as I'm in the same position i.e ltd company. The wording in the pdf is very ambigous and only references 'firms' in some scenaros.

FH

a reply from A&L commercial bank at last

Re: Financial Services Compensation Scheme

Message: Hi

Thank you for your message. I can confirm you will be covered by the Financial Services Compensation Scheme.

----------------------

Could you confirm if my Limited company bank account is covered by the FSCS compensation scheme if A&L commercial bank was to default and be unable to return my account balance to me

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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