Babbus

Hi, we've only just moved abroad and I still haven't done anything with my UK bank/savings accounts. I notice that some banks say you have to be a UK resident to have accounts with them, but does anyone know if it really matters if I keep them?
I use a UK c/o address for correspondence.
Also, does anyone know if you are still entitled to the £50k compensation if the bank goes under and you are living abroad?
Any help appreciated! Thanks!

Dan725

It is a good idea to keep a UK bank account or two open. If you have a UK correspondence address, you won't have any problems doing so. If you should close your accounts, trying to open another one from overseas will prove tricky if not impossible. Having a UK bank account will come in handy at some point (transferring money, sending it back, etc etc etc).

cranston

The UK Govt will always financially back any UK clearing bank.

robin1234

A citizen going to the bakery to buy a loaf, the day the depositors are reimbursed.

cranston

What has that got to do with the potential for any UK clearing bank to fail?

robin1234

Nothing. I just like pictures of barrowloads of cash.

lazy

Cranston Can you tell me what the insured limit I can hold with a UK bank? I have an account with Barclays and have some funds I need to send back when I return in June. I am a bit concerned to send a significant amount to just one bank.

cranston

(Speaking as an ex-banker) there are two limits, "the theoretical" and "what would happen in real life" aka "too big to fail"

The FSCS figure of £50K per person is a theoretical amount that is guaranteed by UK law.

However, the UK clearing banks have always "viewed" (by the Govt, Bank of England, FSA etc) as vital to the British Economy and every customer will always be bailed out by the UK Govt.

In real life any UK clearing bank that gets into trouble will be (part) nationalized - as we have seen with RBS and LLoyds.

Barclays is as safe as the UK Govt (but that's a separate debate). And yes, I have a substantial amount with a British clearing bank.

lazy

Thank you Cranston for your reply. I appreciate this.

lazy

Cranston I have sent you a PM.

Babbus

Thanks Cranston, much appreciated. I've also now, eventually, had a reply direct from the FSCS which for the record says:

From 7 October 2008, when a bank or building society, authorised by the Financial Services Authority (FSA), is unable to pay back the deposits that have been made, the FSCS can pay 100% of the first £50,000 of each depositor’s claim, per authorised institution.
This is calculated with reference to the value of a person’s total deposit with the relevant institution, regardless of the number of accounts held by the depositor in that institution. In other words, an investor may only receive one maximum payment of £50,000 for the sum total of accounts held in one given authorised institution.
Where two depositors hold a joint account, each depositor may receive a maximum of £50,000 compensation in respect of the claim, giving a total of £100,000.
Such protection is available to depositors not normally resident within the United Kingdom, where the deposit is held within a FSA authorised bank or building society.