Savings compensation limit

[Coldicote]

With the £85,000 compensation limit in mind, if one needs to spread savings over more than one bank or banking group,does anyone know a simple website reference that shows which banks are grouped?

[factor-fiction]

Try Martin Lewis's site.
But I really can't believe it will be an issue- the governement will bail out any UK bank and if they can't afford it then the whole economy will have collapsed to such an extent that money won't be worth much anyway

[hc4361]

http://www.moneysavin.../savings/safe-savings

[Coldicote]

Thanks factor30, I spend some time exploring it.

[R1Geezer]

The limit is irrelevant anyway, if we ever get to the stage where people can't get their cash out of the bank then we are back in the stone age anyway and money won't matter.

[craft1948]

Tell that to the first MrCraft.............I believe he had copious amounts of cash in an Icelandic bank.

[R1Geezer]

I'm talking about a major high st bank where millions store their money.

[factor-fiction]

So was I: I mentioned UK banks, the ones covered by the guarantee. Teh Icelandic bank situation was different

[Coldicote]

I'm getting confused. What then is the point of there being a compensation limit - doesn't that mean that compensation can be claimed if a bank goes 'bust'?

[factor-fiction]

I'm not sure at what point we confused you. A guarantee is what it says (unless it's a real crisis and the government goes bust too). The limits are there to reassure savers. We are saying that in practice govenments have underwritten all losses including those above the limit

[New Judge]

Yes it does, coldicote.

The cover applies to depositors with all banks and institutions which are authorised by the FSA. If someone needs to spread their cash around to avoid exceeding the limit it is unlikely they will choose the major High Street banks as they tend not to be very competitive. There are numerous smaller banks, building societies and investment takers where the £85k guarantee is a useful safeguard as they are unlikely to be bailed out by the government.

[factor-fiction]

Sorry, my answer was confusing this time. Scrub the bit in brackets that says "unless it's a real crisis...". The compensation scheme will cover up to £85000 for the banks covered.

[Coldicote]

Thanks everyone for your interest and answers. Anyone selling their home would have to be careful where they put the money if they weren't buying another at the same time. What on earth do people with £millions do with it!!

[factor-fiction]

Yes, I'm glad I don't have a £1,000,000 in spare cash.

[boxtops]

I guess you'd be off to Switzerland, factor, or the Cayman Islands!