1
Personal Account
Personal Account – less than £120,000 at one failed Credit Institution
- Mr A. has £25,000 at Bank A.
- The bank fails and therefore the compensation for Mr. A will be £25,000.
2
Personal Account
Personal Account – more than £120,000 at one failed Credit Institution
- Mr B. has £150,000 at Bank B.
- The bank fails and therefore the compensation for Mr. B will be limited to £120,000.
3
Personal Account
Personal Account – different accounts in different currencies at one failed Credit Institution
- Mr C. has a number of different accounts at Bank C, all in different currencies (exchange rate applicable on compensation date - example only) :
- Account 1 GBP 25,000
Account 2 CHF100,000
Account 3 USD 15,000
- Compensation will be calculated as follows:
Account 1 GBP 25,000
Account 2 CHF 100,000 @ 1.0951 = GBP 91,316
Account 3 USD 15,000 @ 1.3175 = GBP 11,385
Total = GBP 127,701 (EUR 149,180)
- Therefore, the compensable amount would be limited to £120,000.
4
Joint Account
Mr. D has a joint account with Mrs. D totalling £150,000 at one failed Credit Institution. Mr. D also has a separate personal account for £5,000 and Mrs. D has a separate personal account for £70,000.
- Compensation will be as follows:
- Mr. D – £75,000 with respect to the joint account i.e. 50% share, plus £5,000 personal account. Mr. D has a total aggregate amount of £80,000 and therefore compensation would be for this total.
- Mrs. D – £75,000 with respect to the joint account i.e. 50% share, plus £70,000 personal account. Although Mrs. D has a total aggregate amount of £145,000, the maximum payment Mrs. D will receive is £120,000.
5
Two Banks Fail
Mr. E has an account at Bank E for £100,000 and an account at Bank F for £150,000.
- Both banks fail. Mr. E is entitled to compensation of £220,000 – £100,000 limit in respect of Bank E and £120,000 limit with respect to Bank F.
