Quote:
Originally Posted by Leon  |
The UK Government said that it would guarantee all bank deposits up to £35,000, which is £3,300 higher than the previous guarantee.
However, savers should be warned that this is the only element of the Financial Services Compensation Scheme cover that has been changed: current rules still persist in which the £35,000 limit applies to each institution with which you have money, but not every account.
This means that savers who are worried about banks financial security in the light of the Northern Rock affair would be advised to save a maximum of £35,000 with one bank. For example, if you halved savings of £100,000 between two banks that both belong to the same parent group, then you would still only be compensated by a maximum of £35,000.
For instance, Bank of Scotland owns the brands AA, Birmingham Midshires, Halifax, Intelligent Finance and Saga. Only a total of £35,000 in deposits spread across these brands will be guaranteed by the FSCS. Cahoot is provided by Abbey; if you had an account with each of these, you would only receive one payment from the FSCS.
