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Help me understand the FSA limit of 50k with single and joint account with same bank.

(2 Posts)
Thandeka Sun 18-Oct-09 15:55:54

So say I had about 40k in a single account in my name and 55k in a joint account in mine and DH's name- that still takes me over the FSA 50k per person per financial institution?
Or does it?

(I know on a single account the limit is 50k bbut on joint accounts the limit is 100k).

Hypothethically say the bank goes bust- I claim back my 40k but in terms of the joint 55k would my husband be able to claim 50k and me the remainder - thus not losing any of our money or does it work out that technically I have 40k + half of 55k (27.5k) with that institution and thus I have 67.5k with them and we could potentially lose 17.5k?

I doubt very much the bank will go bust and since failing banks have been propped up I would imagine my money is still safe but I just want to make sure I have it correct. Is money for a house so I don't want to lose it before we buy the blimming thing!

MrAnchovy Sun 18-Oct-09 21:34:16

I am not an expert in this, but as I read it the operative provision is COMP 12.6.10 of the FSA handbook.

This says that your claim would be for £40k plus £27.5k so would be capped at £50k, your husband's claim would be for £27.5k.

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