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Are Your Savings Safe? Updated

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Hope this is useful to a few people who have questions about where savings are safest at the moment.

Contains very good [updated] info on the FSCS and which 'foreign' UK banks are 100% covered.




£35k each person per institution we know ....bla bla bla however this compensation has a LIMIT of £4B or to put it another way ...not enough.


In theory, this means should the worst happen and a bank goes out of business, the FSCS has the legal power to call in funds from major financial institutions to cover the compensation needed to repay the first £35,000 lost by every saver. However, from 1 April 2008 a review of the FSCS has said the overall capacity will be capped at just over £4 billion every year. Even this is unlikely to be enough to have covered Northern Rock if it collapsed; when asked what would happen if more than this was needed the regulator, the FSA, responded:

"A shock of sufficient magnitude to cause the possibility of the Scheme being exhausted would trigger the crisis management arrangements between HM Treasury, FSA and the Bank of England. Discussions would be held with HM Treasury and the Bank of England, through the mechanism of the Tripartite Standing Committee about the most appropriate response. Any action arising from these discussions would vary according to the circumstances, and so cannot be specified in advance."


Or to put it another way it is absolutly useless.

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  • 293 Brexit, House prices and Summer 2020

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      • down 5% +
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