Bank compensation limit to return to £85,000

Money, investing, mutuals etc
planteria
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Bank compensation limit to return to £85,000

Post by planteria » Mon Nov 21, 2016 1:53 pm

http://www.bbc.co.uk/news/business-38050155

..as expected. it should never have been lowered in the first place.

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Re: Bank compensation limit to return to £85,000

Post by pabenny » Mon Nov 21, 2016 2:09 pm

This is the deposit guarantee whereby governments underwrite "small" bank deposits in the event of bank failure. It's an EU-driven limit of €100,000 translated into other currencies. As the exchange rate moves, the GBP limit also moves. There is probably some rule about how much the exchange rate has to move before the local currency amount is changed.

The exact amount of the guarantee is unimportant. If I had the funds available, I wouldn't be rushing to increase any deposit from £75,000 to £85,000. Such concentration is usually unwise and/or unnecessary irrespective of any guarantees.

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Re: Bank compensation limit to return to £85,000

Post by planteria » Mon Nov 21, 2016 5:03 pm

agreed.. nor would i. but a lot of people do look for that reassurance.

for all financial institutions the UK, with our own currency, to have had to change these terms and now change them back is a nonsense. our government will be able to set it at, say £100k, if they want.

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Re: Bank compensation limit to return to £85,000

Post by William Joseph1 » Mon Nov 21, 2016 5:22 pm

planteria wrote:agreed.. nor would i. but a lot of people do look for that reassurance.

for all financial institutions the UK, with our own currency, to have had to change these terms and now change them back is a nonsense. our government will be able to set it at, say £100k, if they want.
Or not if they want.

Of course had we joined the Euro there would have been no need to change it up or down at all. :eh:
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Re: Bank compensation limit to return to £85,000

Post by macliam » Mon Nov 21, 2016 10:06 pm

William Joseph wrote:
planteria wrote:agreed.. nor would i. but a lot of people do look for that reassurance.

for all financial institutions the UK, with our own currency, to have had to change these terms and now change them back is a nonsense. our government will be able to set it at, say £100k, if they want.
Or not if they want.

Of course had we joined the Euro there would have been no need to change it up or down at all. :eh:
More likely not, if I remember correctly the limit was £50k until the EU stepped in with the €100k limit and the UK had to up the protection.

However, anyone visiting "the poor South" of Europe will see how the Euro currency is a financial disaster and a political tool. In Portugal, prices are often equal (or higher) than in Gemany, yet wages in Germany are 2.5 times higher. Hardly strange therefore that Portugal has a high level of debt............. allowing them to be bossed around by their paymasters. Likewise Greece (although there the problem is exascerbated by an historical unwillingness to pay taxes)
Just because I'm paranoid, it doesn't mean they're not out to get me

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Re: Bank compensation limit to return to £85,000

Post by planteria » Tue Nov 22, 2016 8:28 am

William Joseph wrote:Of course had we joined the Euro there would have been no need to change it up or down at all. :eh:


:sick: thank The Lord for that.. we weren't so far from being taken in too :problem:

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Re: Bank compensation limit to return to £85,000

Post by planteria » Tue Nov 22, 2016 8:32 am

macliam wrote:More likely not, if I remember correctly the limit was £50k..
sounds right to me.. and yes.. £50k would be high enough for me too :thumbup: point is that we are on track not to have to force our banks, building societies, credit unions to mess around with advising customers/members re. these limits.

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