I am aware that the protection for individuals losing their savings
due to a bank failing are £35,000.

What amount is protected for a Limited Company having savings at a
bank that fails?

On Sep 25, 10:00 am, Milleniumaire 
wrote:
> I am aware that the protection for individuals losing their savings
> due to a bank failing are £35,000.
>
> What amount is protected for a Limited Company having savings at a
> bank that fails?


I dont' know the answer to that, but I know the answer to a related
question.

I am buying a house and I asked my solficitor how I was protected if
his bank went bust while my money was sitting in his client account
there

He did not know so he found out.   These was no protection, not even
the 35k.

Robert

Milleniumaire wrote:
> I am aware that the protection for individuals losing their savings
> due to a bank failing are £35,000.
> 
> What amount is protected for a Limited Company having savings at a
> bank that fails?

Exactly this question recently came up on the BBC's Working Lunch 
programme a few days ago.

The answer is that if the company is defined as Small, in accordance 
with the EU definition of a Small Company, then yes, such Small 
Enterprise has exactly the same protection as an individual.

Definition of a Small Enterprise? Well not really that small, and the 
majority of enterprises will probably fall within the definition :-

A small enterprise has an employee headcount of less than 50, and a 
turnover or balance sheet total of not more than €10 million.

In fact only 2 or those 3 tests need to be met, and the enterprise is 
still defined as small.

If a Limited Company has no more protection than an individual that is
a ridiculous state of affairs.  I think it's fair to assume that a
profitable company is likely to acrue more savings than an individual
and a £35,000 cap is negligible.

On Thu, 25 Sep 2008 02:00:41 -0700 (PDT), Milleniumaire
 wrote:

>I am aware that the protection for individuals losing their savings
>due to a bank failing are £35,000.
>
>What amount is protected for a Limited Company having savings at a
>bank that fails?


same as for a person - on small business accounts.




If you want real safety the answer is a Bank or Building Society
savings account, current account, small business account (with annual
turnovers below £1 million) or credit union, but not savings stamps or
hamper schemes. Specifically this is any UK registered bank (see later
for how this impacts foreign banks UK subsidiaries). 
http://www.moneysavingexpert.com/savings/safe-savings#protected


But obviously one account only per bank

see the list of which banks are sep too.
-- 
http://www.freedeliveryuk.co.uk
http://www.holidayunder100.co.uk

RobertL wrote:

> On Sep 25, 10:00 am, Milleniumaire 
> wrote:
>> I am aware that the protection for individuals losing their savings
>> due to a bank failing are £35,000.
>>
>> What amount is protected for a Limited Company having savings at a
>> bank that fails?
> 
> 
> I dont' know the answer to that, but I know the answer to a related
> question.
> 
> I am buying a house and I asked my solficitor how I was protected if
> his bank went bust while my money was sitting in his client account
> there
> 
> He did not know so he found out.   These was no protection, not even
> the 35k.

http://www.fscs.org.uk/consumer/FAQs/Deposit_claims_FAQs/
FAQ no 11 says you are covered.

I'm not sure if that is £35,000 per client account.  Even a small
conveyancing solicitor can easily have millions in the client account.

> I am aware that the protection for individuals losing their savings
> due to a bank failing are £35,000.
>
> What amount is protected for a Limited Company having savings at a
> bank that fails?


I dont' know the answer to that, but I know the answer to a related
question.

I am buying a house and I asked my solficitor how I was protected if
his bank went bust while my money was sitting in his client account
there

He did not know so he found out.   These was no protection, not even
the 35k.


Not really correct because his insurers will pay.

Peter Crosland