Bellmore Group Management Services, Tokyo Japan How to Secure Your Savings (Part 1)

Bellmore Group Management Services, Tokyo Japan: How to Secure Your
Savings (Part 1)
The collapse of Northern Rock, Bradford & Bingley, and Icelandic
banks caused a lot of panic several years back, leading people to
wonder whether their savings are safe at all. What steps can we take
to secure our savings from such a terrifying and real threat?
We will provide a detailed safety checklist as well as what
safeguards you can apply in case of averse economic scenarios.
The essential facts you need to know
At least 6 facts will let you prepare for worst-case scenarios,
namely:

Increased protection limit. At present, your
savings now gets £85,000 protection based on UK-
regulated financial institution instead of the
former £75,000 only
Every UK-regulated savings and current account as well as cash
ISAs in banks, credit unions and building societies are protected by
the Financial Services Compensation Scheme (FSCS).
From £75,000, the cover was raised to £85,000 on 30 January 2017 after the pound's post-Brexit fall led to a review by the Bank of
England. However, the amount of £85,000 is not given for each account but for each financial institution. Hence, if the bank runs, you
receive £85,000 for each person, for each financial institution. Most savers will get the amount within seven days.

You get a temporary £1-million-protection after 'life events'
Based on rules established in July 2015, savings of up to £1m may be protected for a six-month period in case your bank fails
.
The increase will cover such life events as selling your home (but not when you buy-to-let or a second home), redundancy, inheritances,
and insurance or compensation payouts that could result to you holding a temporarily-high savings amount.
The additional protection will apply starting from the day on which the money is transferred into the account, or the day on which the
depositor becomes eligible to have the amount, whichever comes later. You have to provide documents to show where the funds came
from in case you file a claim for the amount. It might take at most 3 months for any release of cash above £85,000.
This development is beneficial as it provides the saver time to prepare on how to utilize the money. Moreover, you can maximise savings
by adding more money into higher interest-paying accounts instead of the usual lower-paying accounts.

Not every UK savings account is UK-regulated
Majority of banks, also foreign-owned ones such as Spain's Santander, are regulated by the UK government. But certain EU-owned
banks prefer to use the 'passport scheme' where protection only comes from their HOME government. Examples are Fidor, RCI Bank
and others.
Joint accounts count as doubly protected
Since cash in joint accounts are considered as half each, it gets a £170,000 protection.
If you also have a personal account with the same bank, half of your joint savings stands as your total exposure; hence, and any
additional amount above £85,000 is not protected.
An institution is a distinct entity from a bank
Remember, the protection is for every institution, not for every individual account. Therefore, having 4 accounts with a single bank only
entitles you to only £85,000. The meaning of the word 'institution' depends on a particular bank's license and huge banking
conglomerates complicate the meaning.
For instance, Halifax and Bank of Scotland are sister-banks and their accounts are covered for only £85,000, for one institution. RBS
and NatWest, also sister-banks, however, have separate limits.
Distribute your savings to protect them