[Wolves] For all petrol heads like me :-) + on the subject of petrol

[Peter Evans]

On Monday 14 January 2008 13:13:52 David Goodwin wrote:
> Well, it wasn't that bad - from memory I thought you'd get back like 95%
> of any amount up to 30k... which is far more safe than storing it under
> your bedside mattress / in the biscuit tin etc etc.

Like yourself I can't recall the exact rules that were in place at the time.

Actually scratch that, I found them:

The existing protection scheme offers a 100% guarantee on only the first 
£2,000 and 90% on the next £31,000 in the event of a bank collapse - with 
nothing above that sum.

I don't disagree with anything that you've said, but it came as something of a 
shock to find out the limits to which the money is protected.

Furthermore the newer scheme also has a few wrinkles

"Financial Services Compensation Scheme (FSCS).

It gives 100% cover of the first £35,000 for each person's claim per bank. The 
compensation limits apply to each person with each institution authorised to 
take your money under the Financial Services Authority (FSA). The limit on 
joint accounts is £70,000.

The best way to cover savings of £100,000 is to split it among three 
organisations, with a maximum £35,000 with each.

But tread carefully. If you open an account with two different organisations 
which share authority from the FSA - common among bank joint ventures, 
subsidiaries and partnerships - you will end up with just one lot of 
compensation. Then your savings will be lumped together and the maximum 
compensation you will get is £35,000."

So it seems as though if you do have quite a bit saved the mattress might be 
an attractive option afterall.
-- 
Regards,

Pete Evans