£75,000 Or £80,000

[jennyjoan]

Sorry can't find the pertaining question - maybe I forgot to subscribe - i was asking what would happen to the saver if she £185,000 (in your dreams) such like

[Mamyalynne]

http://www.theanswerbank.co.uk/Business-and-Finance/Personal-Finance/Question1535819.html

[Smowball]

The question makes no sense - is there a word missing?

[Mamyalynne]

Jenny is looking for the thread I linked to, she asked a question on it.

[Smowball]

Ahh I see

[Buenchico]

It would be nice to have 850 quid in savings, yet alone £85,000!

However, to try to answer your question, JennyJoan:
If a saver had £100,000 in a bank which went 'belly up', the Government would ensure that he/she got the limit of £85,000 back. The remaining £15,000 would be treated in the same way as any other debt owed by a firm which goes bust: The liquidator would call in all of the banks assets and share them out among the people to whom money was owed. For example, if the liquidator worked out that there was only enough money to pay back just 1p for every £1 which was owed, the depositor would get back just £150 out of the £15,000 which they'd paid in above the guarantee limit.

[Mamyalynne]

jj is now back on the original thread Chris.

[Buenchico]

. . . or, to use the £185,000 figure in your question (and my suggestion of just 1p in the pound available to compensate depositors), the Government would refund £85,000 and the liquidator would refund £1,000, leaving the depositor £99,000 out of pocket.

[jennyjoan]

Thanks Chris and Mamy for the other answer too.

[Mamyalynne]

You're welcome, it's not something I'll ever have to worry about - but good luck to those that do.