I have a one year bond with large british bank. If the bank turned turtle does a bond such as this constitute a deposit/ savings for copensation purposes? I guess there re a considerable number of people in similar circs. People who because of the Ts and Cs of their bond are unable to access their money. Bonds (of varying terms) are I think a widely used vehicle for longer term saving?
Do bonds constitute savings for compensation purposes?
Oct 11, 2008
3 Replies
Depends on the type of bond, but the 1 year fixed rate deposits that have been heavily advertised in the last year or so are covered.
From what I understand, the FSCS will pay you the money with interest when the bond is due to mature. Of course, it it is due to mature next week, you could be waiting a bit longer than that.
I'm surprised at that. Unless, of course, the FSCS also has the option to pay the money immediately if it chooses. Otherwise the FCSC isn't just guaranteeing the deposits but is guaranteeing the returns to the end of the term.
Tim.
Thanks for that, its a one year "generic" bond which matures in January.
Join the Discussion
Have something to add? Share your thoughts — no account required.
Didn't find your answer?
Ask the community — no account required