FSCS dropped to £75k, general safety of deposits...
Discussion
So the 5-yearly review of the limit is upon us, and because the EU lower limit is EUR 100k and given the current exchange rate, the Bank of England has taken the opportunity to reduce the limit from £85k to £75k.
http://www.bbc.co.uk/news/business-33384284
http://www.telegraph.co.uk/finance/bank-of-england...
They didn't have to lower it - it was a limit after all, so not the EU's fault this time (online ignorant commenters will say differently).
Austria has has already scrapped its deposit guarantee scheme entirely, apparently the EU lower limit isn't compulsory. Deposit theft happened in Cyprus (don't remember the detail now). End of last year, there was some G20 agreement that savers are now classed as creditors making them in effect investors in the bank in the case of s
t hitting the fan - cash would be exchanged for "bail-in bonds".
So what's up? BoE reducing it's liability - sensible routine or does it see trouble ahead? What do PHers think about safety of cash deposits in banks generally?
http://www.bbc.co.uk/news/business-33384284
http://www.telegraph.co.uk/finance/bank-of-england...
They didn't have to lower it - it was a limit after all, so not the EU's fault this time (online ignorant commenters will say differently).
Austria has has already scrapped its deposit guarantee scheme entirely, apparently the EU lower limit isn't compulsory. Deposit theft happened in Cyprus (don't remember the detail now). End of last year, there was some G20 agreement that savers are now classed as creditors making them in effect investors in the bank in the case of s
t hitting the fan - cash would be exchanged for "bail-in bonds".So what's up? BoE reducing it's liability - sensible routine or does it see trouble ahead? What do PHers think about safety of cash deposits in banks generally?
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