Dod101 wrote:paulnumbers wrote:mc2fool wrote:The FSCS covers up to £50k of losses, not just holdings of £50k. If you have (had) £500k and you get back £450k (90%) then the FSCS will cover the £50k loss. If, OTOH, you only get back, say, £420k then the FSCS will only cover £50k of the loss leaving you with a final shortfall of £30k.
Are you sure about this? This was never my understanding.
That is what an article in the Sunday Times says this morning. It is losses not the amount you have at risk.
Coming back to my original point if you have a substantial ISA built up over many years you could have say half a million or more tied up with one broker. Would you place that amount of money with one bank? A bit frightening really.
Certainly half a £mil with one broker seems too many eggs in one basket if it's the bulk of your funds. I have mine split between two, and at some point will probably go to 3 brokers. At one point I dabbled with IG Index, but over time became concerned they were too small, and now use HSBC & Halifax. Perhaps this is delusion, but I gain comfort from using larger high street brands.