FSCS and accrued interest

[AleisterCrowley]

Does the FSCS cover accrued (but not yet credited ) interest?

As an example £1k in a 1 year fixed rate bond, interest at end of term.
The provider goes bust near the end of the term. Just £1k back or £1k plus accrued interest?

[monabri]

Does the FSCS cover accrued (but not yet credited ) interest?

As an example £1k in a 1 year fixed rate bond, interest at end of term.
The provider goes bust near the end of the term. Just £1k back or £1k plus accrued interest?

The scheme covers "losses" so if you were only to get the £1k back you would have effectively "lost " the interest payment....so the scheme compensates you.

[monabri]

From " SAIM2085 "

https://www.gov.uk/hmrc-internal-manual ... %20deposit.

"When a bank (or another financial institution) is declared by the FSCS to be in default customers of the bank are invited by the FSCS to make a claim under the compensation scheme. If the claim is accepted by the FSCS as valid and the bank deposit paid interest then it is common for the FSCS to include in the compensation payment interest on the financial product up until the date that the bank was declared to be in default or if appropriate, up to the date of maturity of a fixed term deposit."

[AleisterCrowley]

Very useful, thanks monabri