'Protected' savings..

[Merritt]

I hadn't really looked in to this at all but I see from THIS link that the £50,000 protection isn't as I thought..

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Then, since 7 October 2008, that threshold has been raised so each saver's first £50,000 per bank is fully protected.

This only counts for a net deposit, so if you had £50,000 deposited but also had a £20,000 loan with the same bank, then only £30,000 would be compensated.

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Question is - would a 'net deposit' also cover a mortgage? I.e. if you had a mortgage with bank A and savings with bank A, would the 'net deposit' arrangement come in to affect?

Thanks

Steve

[Merritt]

Dave_ST220 said:

Would the loan be cleared then?

No but it would potentially wipe out any savings you have - hence my concern....


Steve

[Merritt]

LeoSayer said:

Merritt said:

Question is - would a 'net deposit' also cover a mortgage? I.e. if you had a mortgage with bank A and savings with bank A, would the 'net deposit' arrangement come in to affect?

Yes. I have an offset mortgage, so all my savings are with same bank that holds my mortgage.

Thats fine, but with a normal situation i.e. separate savings account and separate mortgage with the same bank, would the mortgage effectively reduce the £50k savings 'protection' that the government has put in place?

[Merritt]

Thanks for the info.. If you are correct, I will be moving mine!

Cheers

Steve