Treasury backs down on deposit protection for savers - reports

Translation.

What this means is that we’ll favour those who can shift and protect themselves against those who in the main don’t have a choice and can’t move. Thanks a bunch UK Treasury. I hope that decision comes back to bite you and that the already badly abused British Saver (a very rare and endangered species) does find a way of taking their money elsewhere. On current figures they won’t be much worse off if they withdraw and stick it under the bed. Or perhaps the Government just wants them to spend in order to ‘promote growth’ – whose growth?

Posted by: Harry Katz

Get Real

Those with under £85000 are already protected by the FSCS and private individuals with more should spread their meony around in any event - How may have over £85K Mr Katz? How many jobs would be lost if corporate investors move abroad... It has to be a question of balance

Posted by: Simon Webster

What's the point?

Having tried to make a serious comment I was timed out - not for the first time - so to hell with it.

Posted by: David Cowell, Myddleton Croft

timed out

you have timed me out too, do you want readers to comment in 30 seconds or less?

Posted by: Andy Newman

Scewed up risk

This shows that entrusting banks with money is high risk investing. The original FSCS levels should have been maintained when Northern Rock went bankrupt, and people like Martin Lewis, who never mentioned the compensation scheme before the NR bankruptcy, should have been chased in the same way that the Regulator and FSCS are now after IFAs. The whole risk thing has been screwed up by bailing out bank savers.

Posted by: Ken Durkin

Life under the Red Shield

I’m with Harry, You can’t expect the bankers & bond holders pets (the politicians) to actually do something constructive for the sheeple. Deposit based banking should be about protecting your capital with NO RISK – that is capital & purchasing power. Sadly with the storm we are going through only a fool would keep all of their capital in Fiat in an institution that if it were not for the good graces of the tax payer would have been bankrupt 3 years ago. I really do feel for the little old ladies & gentlemen who trust this corrupt system run for the benefit of the few.

Posted by: Stuart Rathbone

I wouldn't weep

"Investors and banks have argued that could risk destroying the market for bank debt and cause corporate deposits to flee the UK." So? Who would suffer apart from the casino bankers?

Posted by: Morfar 2000

@ Simon Webster

Believe me I am real. If a major bank flopped do you really think that the Government has the wherewithal to honour the £85k? I can assure you that there are plenty of elderly (who can’t manage internet banking and who have difficulty coping with multi accounts) with over £85k – but that is all somewhat beside the point. The point is one of confidence and reassurance and the message is basically as I laid out in my post – stuff the personal saver. Put this next to the fact that our venal politicians merely cry crocodile tears regarding inflation. RPI was 5.2 in July and is 5.4 now and all we get are banal excuses. It suits them admirably as it is the only plan they have for reducing the deficit and if they could get away with it they would probably be pleased to see RPI at 8%. This doesn’t only affect cash holders, but it also is a stealth tax on the better off who are lucky enough to have a CGT liability. There is no indexation allowance any longer so CGT rates are in fact going up by 5% compound. If the ordinary public withdraw their money and don’t invest in the UK then not only will jobs be lost, but mortgages would become harder to get than they are now. Whichever way you want to cut it the prudent are being kicked in the crutch. I don’t want to bang on forever but over the last 40 years Sterling has lost 89% (yes – eighty nine) of its value. Since 2008 the £ has lost 25% of its value. The only consistent thing in the UK is that we have governments who shouldn’t be in charge of the tea money.

Posted by: Harry Katz

Banks going bust - is it closer than we think?

Is this beacuse there is now a real possibility that some UK banks may well go bust if the EU do not sort out their problems? Either way I do not believe it is the UK saver they are protecting, and agree with Harry. Maybe we should be advising our clients to withdraw all their money and investments and when markets subsequently fall then get them to invest again and hopefully make a real profit (which few have seen in the last decade) and maybe then people power will dictate the market and not a select over paid few. Would be interesting!!

Posted by: Michael Fallas