Savings protection update

Just a quick word about things that were mentioned in the news recently:

1. The maximum protection under the Financial Services Compesation Scheme (FSCS) is still only £35,000.  There has been media coverage recently about raising it to £50,000 and this has in fact been scheduled to happen this year for some time.  The decision was made in the light of Northern Rock but the law has not yet been passed.

2. Around a third of Bradford & Bingley depositors had more than £35,000 on deposit and nobody lost a penny.

3. The Irish bank guarantee is telling – it covers only Irish banks.  And that doesn’t include banks who have a branch in Ireland, just those which are genuinely homegrown banks.  No taxpayers will want to prop up the banks of a foreign nation.  We are now in the realm of putting our money in banks based on their national origins and the willingness and financial ability of the government to intervene.

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