BoE to Hike Deposit Insurance to 1 million GBP for 'temporary deposits'

[Lightning]

In most countries, in the EU, deposit insurance is provided on the first 100,000 EUR or local currency equivalent.

In the UK, the first 85,000 GBP (slightly over 100,000 EUR) is protected by the FSCS. This effects Irish savers with Investec, Nationwide UK (Ireland) and Leeds Building Society Ireland.

According to Peter Hoskins, from Sky News:

Bank of England plans to safeguard deposits of up to £1m under new rules, currently regulations protect just £85,000 of individual savings

This, if implemented, will give Investec, Nationwide UK (Ireland) and Leeds Building Society Ireland a competitive advantage over the other Irish banks.

 

[Brendan Burgess]

That is a great idea for a short guarantee.

I would be against a longer guarantee. Someone has to pay for it.

The guarantee given to Irish depositors has cost us all dearly.

Brendan

 

[Lightning]

It's juts a Six month temporary guarantee that will apply only to money temporarily deposited in a bank, for instance from a house sale or insurance claim.
Good Idea. Misleading Tweet
see http://www.theguardian.com/business/2014/oct/06/savings-limit-1m-pounds-bank-of-england

Thanks for the clarification.

Interesting that the FCSC will have two deposit insurance levels. One for 'temporarily deposited money' in addition to the normal guarantee. It will be interesting to see the finer detail on the the six-month temporary guarantee.