R01 FSCS Compensation Question help please

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Apologies but I cannot seem to wrap my head around this question even by reading through the textbook and searching online endlessly.

In the attached screenshot the question claims Beryl would receive the full amount of 140k but only 55k (from 110k held jointly with husband) under FSCS compensation rules.

Is anyone able to explain this to me? As from my understanding they would receive the full savings as they are jointly held and only up to 85k of the investment bond...


  • Hi,

    The investment bond is a long term insurance contract and has 100% protection with no cap.
    The deposit account is subject to the £85,000 cap per individual but Beryl's claim is limited by her share of the joint ownership, which is £55,000 (i.e. half of £110,000).

    The question is asking "what would Beryl get..." not what would they both get.

    Benjamin Fabi 
  • Brilliant thanks for your help Benjamin much appreciated :smile:

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