Finally somebody talking about this matter. Thank you for sharing. However I am still suspicious about fscs covering even up to £85,000 once similar situation will occur as in 1970's.
Elderly people are so vulnerable because they don't use the internet much. If they do their software can be bogus or their eyesight. I wonder if there is anything you can do with the Charity Age UK? I do worry about the elderly relying on so-called friends and family members. I wish the Government could protect these people. I know it's not your remit but you could be a voice of reform because I really feel you have everyone's best interests at heart. A rare breed. God bless you🙏🙏
Thank you for the explainer about Chip. I knew that Clearbank was protected , I felt pretty safe transferring my savings to Chip, this was a good explainer for peace of mind.👏
Another thing worth noting: Pensions schemes and isa products like vanguard lifestrategy often have a large potion of their holdings in bonds. But savings bonds effectively act like bonds, with the added perk of being partially (or fully) FSCS protected (unlike corperate bonds). However, one downside of savings bonds is you can't properly rebalance with them. There are ways of sort-of making it work, but it's not quite the same.
Just picking up on the protection limit point you mention. The £85k limit is per depositor not per institution. So as long as the institution has its own licence you will be covered. This includes a couple who each have an account with £85k each or one joint account with £170k, both scenarios would be covered.
Hi Andy (and everyone) I'm sure that im not the first to ask this but is CHIP a safe place to keep money? (I understand that CHIP doesn't have cover but CLEAR BANK the umbrella company does?
If there is a banking crash How will we be compensated Isn’t the money to bail us all out currently residing in a bank somewhere? Surely they can’t print anymore
It's worth noting that if you had 100k in first direct+ HSBC, you most likely would not lose 15k if HSBC went under. The 85k is insured, but the other 15k will be paid out of any remaining assets HSBC have, and most likely they will have something. You might not get *all* of the 15k back, and it may take some time, but you'll probably get something back eventually.
This isn't correct. First Direct won't go under unless HSBC does. If HSBC goes under then so will first direct. So if you combined 100k between the accounts you will only get back 85k.
@@deltaechomusicnh555 Yes, only 85k is insured. But you get back more than the insured amount. The insured amount is the amount, you're *guaranteed* to get back, and you'll get it back fairly quickly. After that, HSBC would go through a bankruptcy process, and you'll be one of the "lenders" that will be paid out in that process. You might not get *all* of the remaining 15k back, and the bankruptcy process takes months or years, but you will get something back eventually.
@@deltaechomusicnh555 Why not, if it's likely. The 85k guarantee isn't really a guarantee anyway, it's largely untested. It may be the government decides they can't afford it if a big bank like HSBC goes down.
Hi Andy. How safe/secure would you say Chase bank U.K. is at the moment? I am using them for the 1% cash back but also the easy access savings as they have a higher interest rate. I have under 85k in there but with the instability in the USA banking going on I’m not sure if I should stop using it and swap savings to nationwide for example. They have lower interest but have local branches seem more accessible. What is your opinion/ what would you suggest. Thanks.
No bank is safe. The financial system has already collapsed and it's only a matter of time before the financial string pullers launch Central Bank Digital Currencies (CBDC) as a solution to the problem that they themselves have engineered.
Are fixed rate bonds safe? In the UK there is a 6.2% 1 year fixed government growth bond available now. Will putting my money into this bond protect my money if there is an economic crisis like back in 2008? The banks are not safe anymore, since they changed the bail out rule into a bail in, where by people's bank accounts will be raided to prop up the banks this time, instead of the government paying through the tax payer.
The question is not whether you'll get the money back, it's how much will it be worth in the event of a banking crisis. Government will need to print money for the bailout, inflation will skyrocket and your money will be worth a fraction of what you get back.
They don’t bail-out banks anymore, they bail-in. Tax payers don’t foot the bill and depositors don’t loose their money. Share holders and bond holders foot the bill and the bank is allowed to go bust, unless it is bought out of course.
@@lickerishtuna6449 if the banks go bust the government guarantees the deposit, i.e. the tax payer not share holders. They will the need to print the money resulting in higher inflation.
Depositors are only covered up to to the FSCS £85k. They won’t bail-out the bank and let it survive unless it is systematically important. Even then the banks have been stress tested to withstand a crisis such as 2008. Shareholders and bond holders money is used and that’s why it’s called a bail-in. It’s highly unlikely any UK bank is going to get into trouble through poor financial practices such as those seen at SVB or Credit Suisse, even the risk of contagion regarding a loss of confidence and a potential run on the bank is extremely low.
Per financial institution It should be up to 85k protection for personal accounts and an additional 85k for business accounts. At least this is what Starling told me. Is this not right Andy?
As I doubt he’ll answer. It’s Zero when it comes to money actually invested in stocks. FSCS only covers the uninvested cash in a stocks and shares ISA.
You didn’t mention joint accounts. I think, though I’m not sure , that you are protected up to 120,000 ? Also with ISA’s your protected up to the 85,000 limit.
Thank you for the great content. You mentioned investing at the end. I know that brokers have to isolate your money from their own which provides some cover, but what cover would we have if say we were invested in passive index funds on a platform such as Vanguard? If these passive funds are at risk of any kind of bubble burst if things did get much worse, I wonder what happens then.
Hey, it’s not something I’ll ever cover. Though some people can make cash from it, the reason the betting firms offer this is they know it’ll hook some people in who will end up losing a lot of money
Quite simply really if your bank is FSCS protected then you have nothing to worry about , If you have more than 85K put it in 2 different banking groups that has FSCS... simple really?
Problem is when that means having to invest some at a less favourable rate. Many resent having to do that. It's been £85k for quite some time now and an increase should be considered.
“You should be ok” lol. I hope it never happens but if one or 2 major banks fail I would love to see if people savings actually get reimbursed. The scheme is not costed so I guess we will never know until it happens.
@@stephen3654 I am not sure I think I have to talk to the bank but it does look like I need to move some of the money. I don't want to take any out of the ISA for tax reasons.
@martyn woodward You have to provide your existing IS A account details to the bank you are planning to transfer the lump sum to when you open the account. Please make sure they accept transfers in before opening and please do not transfer it yourself as you'll lose your current tax wrap on that lump sum
Finally somebody talking about this matter. Thank you for sharing. However I am still suspicious about fscs covering even up to £85,000 once similar situation will occur as in 1970's.
Elderly people are so vulnerable because they don't use the internet much. If they do their software can be bogus or their eyesight. I wonder if there is anything you can do with the Charity Age UK? I do worry about the elderly relying on so-called friends and family members. I wish the Government could protect these people. I know it's not your remit but you could be a voice of reform because I really feel you have everyone's best interests at heart. A rare breed. God bless you🙏🙏
Thank you for the explainer about Chip. I knew that Clearbank was protected , I felt pretty safe transferring my savings to Chip, this was a good explainer for peace of mind.👏
Excellent as always..........very informative clear and understandable
Glad it was helpful!
Another thing worth noting:
Pensions schemes and isa products like vanguard lifestrategy often have a large potion of their holdings in bonds.
But savings bonds effectively act like bonds, with the added perk of being partially (or fully) FSCS protected (unlike corperate bonds).
However, one downside of savings bonds is you can't properly rebalance with them. There are ways of sort-of making it work, but it's not quite the same.
How do we check if trading 212, Vangard and hsbc stocks is using the same sip and fscs
Just picking up on the protection limit point you mention. The £85k limit is per depositor not per institution. So as long as the institution has its own licence you will be covered. This includes a couple who each have an account with £85k each or one joint account with £170k, both scenarios would be covered.
If your LISA is based on insurance, then you can be refuned 100%.
So if a small bank uses a large bank for clearing, does that mean they share the same licence?
If you have a joint account the FSCS is doubled to £170, 000 worth mentioning, that's what I've been given to believe anyway👌
Yep!
In the USA they have something called 'Money Market Funds'. Do you know what is the UK equivalent?
Hi Andy (and everyone) I'm sure that im not the first to ask this but is CHIP a safe place to keep money? (I understand that CHIP doesn't have cover but CLEAR BANK the umbrella company does?
saved my life. well donel
If there is a banking crash
How will we be compensated
Isn’t the money to bail us all out currently residing in a bank somewhere? Surely they can’t print anymore
Good advice. Surely putting savings into pensions would mean paying tax on it when you withdraw it after the initial 25%.
But you get tax relief now, and potentially extra free cash from employer if they match
It's worth noting that if you had 100k in first direct+ HSBC, you most likely would not lose 15k if HSBC went under.
The 85k is insured, but the other 15k will be paid out of any remaining assets HSBC have, and most likely they will have something.
You might not get *all* of the 15k back, and it may take some time, but you'll probably get something back eventually.
This isn't correct. First Direct won't go under unless HSBC does. If HSBC goes under then so will first direct. So if you combined 100k between the accounts you will only get back 85k.
@@deltaechomusicnh555
Yes, only 85k is insured.
But you get back more than the insured amount.
The insured amount is the amount, you're *guaranteed* to get back, and you'll get it back fairly quickly.
After that, HSBC would go through a bankruptcy process, and you'll be one of the "lenders" that will be paid out in that process. You might not get *all* of the remaining 15k back, and the bankruptcy process takes months or years, but you will get something back eventually.
@IamGrimalkin Yeah but that's my point. There's no point talking about getting back more than 85k, because that's not guaranteed.
@@deltaechomusicnh555
Why not, if it's likely.
The 85k guarantee isn't really a guarantee anyway, it's largely untested. It may be the government decides they can't afford it if a big bank like HSBC goes down.
@IamGrimalkin It is a guarantee, that's literally the whole point of it. You're unlikely to see more than 85k.
Is this thing european or UK only?
FSCS wrote back to me, stating that Chip are not covered.
Hi Andy. How safe/secure would you say Chase bank U.K. is at the moment?
I am using them for the 1% cash back but also the easy access savings as they have a higher interest rate. I have under 85k in there but with the instability in the USA banking going on I’m not sure if I should stop using it and swap savings to nationwide for example. They have lower interest but have local branches seem more accessible. What is your opinion/ what would you suggest. Thanks.
No bank is safe. The financial system has already collapsed and it's only a matter of time before the financial string pullers launch Central Bank Digital Currencies (CBDC) as a solution to the problem that they themselves have engineered.
Is gateway covered?
Are fixed rate bonds safe? In the UK there is a 6.2% 1 year fixed government growth bond available now.
Will putting my money into this bond protect my money if there is an economic crisis like back in 2008? The banks are not safe anymore, since they changed the bail out rule into a bail in, where by people's bank accounts will be raided to prop up the banks this time, instead of the government paying through the tax payer.
The question is not whether you'll get the money back, it's how much will it be worth in the event of a banking crisis. Government will need to print money for the bailout, inflation will skyrocket and your money will be worth a fraction of what you get back.
They don’t bail-out banks anymore, they bail-in. Tax payers don’t foot the bill and depositors don’t loose their money. Share holders and bond holders foot the bill and the bank is allowed to go bust, unless it is bought out of course.
@@lickerishtuna6449 if the banks go bust the government guarantees the deposit, i.e. the tax payer not share holders. They will the need to print the money resulting in higher inflation.
Depositors are only covered up to to the FSCS £85k. They won’t bail-out the bank and let it survive unless it is systematically important. Even then the banks have been stress tested to withstand a crisis such as 2008. Shareholders and bond holders money is used and that’s why it’s called a bail-in. It’s highly unlikely any UK bank is going to get into trouble through poor financial practices such as those seen at SVB or Credit Suisse, even the risk of contagion regarding a loss of confidence and a potential run on the bank is extremely low.
What if you have more than 85k in a stocks and share ISA like vanguard ?
Cash covered up to £85k. Investments are held separately and ringfenced.
That’s protected to £50,000 in investments
Shares aren't like cash eg. You already own the investments which are held separately to the company. So these aren't at the same risk
Is the FSCS cover for joint accounts or per person,I mean £85,000 each?
Joint accounts are £170,000
Per financial institution It should be up to 85k protection for personal accounts and an additional 85k for business accounts. At least this is what Starling told me. Is this not right Andy?
Very helpful Andy. What is the level of protection for stocks and share in an isa ?
As I doubt he’ll answer. It’s Zero when it comes to money actually invested in stocks. FSCS only covers the uninvested cash in a stocks and shares ISA.
thank you for this update :)
My pleasure!
You didn’t mention joint accounts. I think, though I’m not sure , that you are protected up to 120,000 ? Also with ISA’s your protected up to the 85,000 limit.
Thought I did! That’s doubled to £170,000
@@BeCleverWithYourCash
Didn’t know that Andy, that’s good news for us.
HI Andy, Do joint accounts get double FSCS protection, ie £170k? Thanks
Yes they do
Thank you for the great content. You mentioned investing at the end. I know that brokers have to isolate your money from their own which provides some cover, but what cover would we have if say we were invested in passive index funds on a platform such as Vanguard? If these passive funds are at risk of any kind of bubble burst if things did get much worse, I wonder what happens then.
Thanks 🙏
Is Chase covered by the FSCS?
Yes
Yep
I thought Barclays owned Chip ???
No, it’s possible the invest in them but they don’t own them
What about banking groups - say the Llyods banking group
So you can check the FSCS website as I say in the video, though Lloyds has its own licence, whereas Halifax and Bank of Scotland share one
Great FSCS pronunciation ... just kidding . Is there a bank which I can have joint account with my wife .. Protected to £120,000?
What if someone has more than 100000k on their ISA. That means it isn’t safe? But only up to 85000k
That’s right
Are premium bonds considered safe ?
Yep
All NS&I investments are treasury backed and not limited to just £85k cover.
Hi Andy, can you make a video about match betting please?
Hey, it’s not something I’ll ever cover. Though some people can make cash from it, the reason the betting firms offer this is they know it’ll hook some people in who will end up losing a lot of money
@@BeCleverWithYourCash that makes sense. I appreciate your honesty ☺️
@@BeCleverWithYourCash also CMC invest give £50 when you deposit £50. Might wanna add on your list :D
Quite simply really if your bank is FSCS protected then you have nothing to worry about , If you have more than 85K put it in 2 different banking groups that has FSCS... simple really?
Problem is when that means having to invest some at a less favourable rate. Many resent having to do that. It's been £85k for quite some time now and an increase should be considered.
Short answer: yes. Saved you 13 minutes
Subject to £85k limit per banking institution.
Not covered if your bank eg. Some of the online only ones isn’t fully licensed.
“You should be ok” lol. I hope it never happens but if one or 2 major banks fail I would love to see if people savings actually get reimbursed. The scheme is not costed so I guess we will never know until it happens.
The government would step in if that happened
GSIB’s are not allowed to go down, government always steps in
There is so much faith in the government 👍😂
What about if you have more than 85k in an ISA with a Bank.
Personally I would be planning to move some of it next week into a
New USA to reduce the risk
@@stephen3654 I would say so once the new financial year starts again.
@@stephen3654 I am not sure I think I have to talk to the bank but it does look like I need to move some of the money. I don't want to take any out of the ISA for tax reasons.
@martyn woodward You have to provide your existing IS A account details to the bank you are planning to transfer the lump sum to when you open the account. Please make sure they accept transfers in before opening and please do not transfer it yourself as you'll lose your current tax wrap on that lump sum
Move anything over 85k to a different institution- but use the “transfer” option rather than withdraw
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