1 year fixed rate bond covered by £85K rule?
Discussion
voicey said:
A bond is not just a fixed term savings account. There are corporate bonds out there that are marketed to retail clients and these do not have the FSCS cover.
OP: Just ask the provider, they will tell you readily enough.
From the description provided by the OP, he is clearly referring to a term deposit and hence any discussion about corprate bonds is irrelevant.OP: Just ask the provider, they will tell you readily enough.
Sidicks
This might be complicated.
The FSCS only compensates per person per FSA regulated Firm, so if you hold multiple accounts with the same entity, irrespective of the product, the maximum you can claim is £85,000, but if you hold a joint account, the limit becomes £85,000 x 2.
Im not 100% on the FSCS rules, but there are different rules with regards to "investments" over savings deposits and I think as you're buying a product and not just dumping cash into an savings account, this would be deemed an investment. The max coverage I think for investments is £50k.
Its more complicated if you hold the bond with say Barclays Capital and any other savings with Barclays Retail, as in the eyes of the FSA/FSCS they maybe considered as the same entity, so you would only be protected upto your maximum of £85,000 for deposits or £50,000 for investments but not £135,000 for both.
Goto www.fscs.org.uk and give them a call/email.
ETA.
Just seen you're thinking of Britannia, as they were taken over by the Co-Op in 2009, the FSA registration of Britannia no longer exists and it now comes under the FSA registration of the Co-Operative Banking Group, so if you have other savings accounts with Britannia, Smile or the Co_op, I think you'll only have a max FSCS coverage of £85,000 in total, not per product or per account.
The FSCS only compensates per person per FSA regulated Firm, so if you hold multiple accounts with the same entity, irrespective of the product, the maximum you can claim is £85,000, but if you hold a joint account, the limit becomes £85,000 x 2.
Im not 100% on the FSCS rules, but there are different rules with regards to "investments" over savings deposits and I think as you're buying a product and not just dumping cash into an savings account, this would be deemed an investment. The max coverage I think for investments is £50k.
Its more complicated if you hold the bond with say Barclays Capital and any other savings with Barclays Retail, as in the eyes of the FSA/FSCS they maybe considered as the same entity, so you would only be protected upto your maximum of £85,000 for deposits or £50,000 for investments but not £135,000 for both.
Goto www.fscs.org.uk and give them a call/email.
ETA.
Just seen you're thinking of Britannia, as they were taken over by the Co-Op in 2009, the FSA registration of Britannia no longer exists and it now comes under the FSA registration of the Co-Operative Banking Group, so if you have other savings accounts with Britannia, Smile or the Co_op, I think you'll only have a max FSCS coverage of £85,000 in total, not per product or per account.
Edited by djstevec on Tuesday 17th July 15:37
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