Bank deposits

[Coldicote]

I see news reports refer to bank deposits and that to protect savers it is proposed to increase the guaranteed sum of �35,000 up to �50,000. What is meant by a bank deposit in that context? Does it include straight foward savings in a saver account, in which case it might be best to withdraw the cash,or is a 'deposit' a particular kind of account?

[factor-fiction]

The limit applies to all money with a bank, regardless of what type of account it is- savings acount, cash accont, deposit accout, cash ISA...

[joggerjayne]

Presumably, the protection is for each Bank, not each individual person, yes?

So if you have more than �50,000, and you spilt it between different banks, then each of your �50,000's is protected.

That sounds like a statement, but it's meant as a question.

=0)

[Coldicote]

Thank you for your interest. I have decided to seek independent financial advice in the very near future. My solicitors tell me that they are not allowed to give this sort of financial advice, but suggested a few independent firms I might approach. I understand from another source that banks, building societies etc. are often linked into a group and one would need to be careful to avoid putting all one's savings into one group, which would be like putting it into one bank. Don't know whether this is accurate but it's something to check.

[factor-fiction]

Joggerjayne is right, although you need to ake care that two different banks are not actually part of the same group. All the info you need is on Martin Lewis's site. I'm not sure it's worth Coldicote paying for independent financial advice if this is all you need to know- all the facts are on Martin Lewis's site

[joggerjayne]

Thanks factor30 (in the sense that I was hoping that that was correct).

So instead of paying for advice, don't leave more than �50k in any form of cash deposit a/c.

I wonder about investments portfolios where the financial institution is the trustee, and therefore the legal owner, of the shares in the portfolio.

Presumably the only sure policy is to spread investments of any nature so that no more than �50k is held by any institutions within a group.

The trade off for the security may be the loss of interest pecentages that might be earned by leaving a large amount in one fund for any length of time. However, in the current market, that percentage is probably minimal.