Deputy bond

[tinkytoes]

I Have been appointed as deputy for my relations financial affairs and as instructed, took out a bond to protect should anything happen to her money.
I am wanting to invest the bulk of her money within 2 banks, both exceeding the 85k covered by the FSA.
If one of these banks collapsed for whatever reason, would the deputy bond be used for any loss of money? I spoke to the company who directed me to the OPG who diverted me straight back to the bond issuing company. Nobody can answer the simple question

 

[jenniferpa]

I don't know the answer to your question but I would like to ask you why would you do this? What sort of advantage is your mother gaining from you putting all her eggs in two baskets? Maybe there's something, but I do think it's an unwise thing to do, no matter how small the possibility of bank failure might be.

 

[jenniferpa]

P.s. having looked at this https://www.gov.uk/government/publi...te-surety-bonds/opgs-approach-to-surety-bonds

It sounds as if the bond issuer would pay up and then possibly sue you as the deputy

 

[jaymor]

Splitting it between more banks would be better thus staying below the £85k limit.

Care needs to be taken to make sure the banks you choose are not connected to any other bank you have chosen. Not all banks within a group have separate licences. The bank I worked for had three other banks within the group but all worked under separate licences. Some banks have building societies as part of their group so again care is needed.

 

[Saffie]

Splitting it between more banks would be better thus staying below the £85k limit.

Care needs to be taken to make sure the banks you choose are not connected to any other bank you have chosen. Not all banks within a group have separate licences. The bank I worked for had three other banks within the group but all worked under separate licences. Some banks have building societies as part of their group so again care is needed.

@jaymor However, the OP has said that deposits in both banks would be over the limit so surely better to use a third or invest in Premium Bonds or something similar.

 

[jaymor]

@Saffie. My suggestion was if the amount available could be split between enough banks to bring the deposit below the upper limited then the OP would be covered by the FSA. Care has to be taken to make sure each of the banks works under a separate licence. There are many other ways to invest the money other than in banks, all open to the OP.

 

[love.dad.but..]

I Have been appointed as deputy for my relations financial affairs and as instructed, took out a bond to protect should anything happen to her money.
I am wanting to invest the bulk of her money within 2 banks, both exceeding the 85k covered by the FSA.
If one of these banks collapsed for whatever reason, would the deputy bond be used for any loss of money? I spoke to the company who directed me to the OPG who diverted me straight back to the bond issuing company. Nobody can answer the simple question

I was attorney for my dad so no experience of deputyship and having a bond however with his considerable house sale funds and most institutions offering similar interest rates I played safe and kept each within the FSA protection limit which was less than it is now so spread his funds across 5 institutions checking they weren't connected and premium bonds as he was a tax payer. It took a bit of foot work as many online wouldn't deal with attorneys but I felt I had fulfilled my diligent duty for my dad.