Another banking question; topical or what?

[mint]

Thanks to the informed members here, I now know that the "safe" limit for UK banks is £35k per account and for French banks, the sum is €70k.

Does anyone know of any "protection" afforded to an off-shore bank or even an off-shore branch of a UK bank, eg Nationwide's IOM operation (yes, I know the Nationwide is not a bank, just can't think of another example readily)?

Seems like it's time to spread the risk and put the eggs in different baskets. 

[Sunday Driver]

From the Nationwide International website:

Nationwide International is a deposit taker licensed by the Isle of Man Financial Supervision Commission (FSC). Under the terms of the license, deposits are covered by the Isle of Man Depositors' Compensation Scheme. Under the scheme, claims will be met by the scheme manager and the amount of compensation payable is limited to 75% of an eligible protected deposit, subject to an overall maximum of £15,000, or the currency equivalent, in respect of each eligible depositor.

Investors should note that deposits made with Nationwide International are not covered by the Financial Services Compensation Scheme under the UK Financial Services and Markets Act 2000.

 

[mint]

Thank you so much, SD; a definitive answer, as I have come to expect from you.

[Benjamin]

[quote user="sweet 17"]

Thanks to the informed members here, I now know that the "safe" limit for UK banks is £35k per account

[/quote]

Just a slight clarification here sweet 17. The compensation is payable to each account holder and not per account. (which I know was clarified in the other thread)

This is the relevant section lifted off the Financial Services Compensation Scheme web site.

1. I have my money in a joint account in a High Street bank. How would FSCS pay compensation if the bank failed?

The compensation limit of £35,000* applies to each depositor for the

total of their deposits with an organisation, regardless of how many

accounts they hold or whether they are a single or joint account

holder. In the case of a joint account, FSCS will assume that the money

in that account is split equally between account holders, unless

evidence shows otherwise.

This means that each account holder in a joint account would be eligible for compensation up to the maximum limit.

*The FSA amended our rules to increase the limit to £35,000 on 1

October 2007. For claims against deposit-taking 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). Please note that this is the limit for FSCS compensation.

 

[mint]

Thank you for that, Benjamin.

So, let me see if I've got it right:

£35k per depositor per organisation

€70k per depositor in France; does this also apply to per organisation?

Then 75% up to a max of £15k per depositor with Nationwide.

I need to have this spelt out for me, Benjamin, otherwise it'll all go over my head.

Thanks again.

 

[Gastines]

They get you everyway,the downside of their £35k rule is that most of them pay a better rate of interest only if you have over £50k with them. Such is life.

I am seriously thinking of buying a small house to rent out.Thinking that if ones buys at the low end of the market,cash no mortgage,I will have an increasing asset and rent.

Having just read of the Damian Hurst auction and the prices realised,I suspect that there is still a lot of lolly about somewhere and also some people with very odd taste. I might just pickle a few old rats and perhaps a giraffe and see if I can find any mugs about.

Regards.

[Benjamin]

[quote user="sweet 17"]

Thank you for that, Benjamin.

So, let me see if I've got it right:

£35k per depositor per organisation

Correct

€70k per depositor in France; does this also apply to per organisation?

No idea. Perhaps whoever found that out in the first place can help?

Then 75% up to a max of £15k per depositor with Nationwide.

That reference was to Nationwide Offshore. Nationwide UK is governed by the FSCS.

I need to have this spelt out for me, Benjamin, otherwise it'll all go over my head.

Thanks again.

 

[/quote]

[mint]

Benjamin, thanks for coming back.  The person who posted about French banks was 5-element so, hopefully, she'll find this post and come back to it.

Who, or what, is FSCS? 

I'll google them if you don't come back, Benjamin, but you do seem to know a lot about them?

[David J]

Hi

Just seen your message.  FSCS stands for Financal Services Compensation Scheme.

 

BFN

 

 

 

David J

[mint]

Thanks, David.  I did do a bit of money transferring today.

Mind you, I'm not seriously worried but I suppose it's as well to be ultra careful at a time like this.