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You can find the current article at its original source at http://www.guardian.co.uk/money/2013/mar/18/cyprus-savings-levy-uk-deposits
The article has changed 7 times. There is an RSS feed of changes available.
| Version 4 | Version 5 |
|---|---|
| Cyprus savings levy: how safe is your money? – Q&A | Cyprus savings levy: how safe is your money? – Q&A |
| (2 days later) | |
| While Cypriots are outraged that the government is poised to swipe up to 10% of their savings in the form of a bank levy, savers in the UK are beginning to worry whether money invested in the region's banking institutions will be similarly hit. | While Cypriots are outraged that the government is poised to swipe up to 10% of their savings in the form of a bank levy, savers in the UK are beginning to worry whether money invested in the region's banking institutions will be similarly hit. |
| Here's our Q&A on how the Cyprus bank levy affects you | Here's our Q&A on how the Cyprus bank levy affects you |
| What's happened? | What's happened? |
| Cash-strapped Cyprus has agreed a €10bn (£8.7bn) rescue package from international lenders to strengthen its economy and recapitalise its battered banks. But savers across the Cypriot banking sector are being forced to contribute to the deal through a compulsory levy on their deposits that will raise €5.8bn. | Cash-strapped Cyprus has agreed a €10bn (£8.7bn) rescue package from international lenders to strengthen its economy and recapitalise its battered banks. But savers across the Cypriot banking sector are being forced to contribute to the deal through a compulsory levy on their deposits that will raise €5.8bn. |
| This is to take the form of a one-off tax of 6.75% on all bank deposits under €100,000, rising to 9.99% over that amount. | This is to take the form of a one-off tax of 6.75% on all bank deposits under €100,000, rising to 9.99% over that amount. |
| I'm a Brit living in the UK, with money invested in Bank of Cyprus. Will my savings be raided? | I'm a Brit living in the UK, with money invested in Bank of Cyprus. Will my savings be raided? |
| No. The stability levy on deposits in Cyprus has no effect on deposits with Bank of Cyprus UK because it is a UK bank subject to UK financial regulations, and eligible depositors are protected by the UK's Financial Services Compensation Scheme. | No. The stability levy on deposits in Cyprus has no effect on deposits with Bank of Cyprus UK because it is a UK bank subject to UK financial regulations, and eligible depositors are protected by the UK's Financial Services Compensation Scheme. |
| The FSCS guarantees 100% protection of the first £85,000 a saver deposits with an individual firm. | The FSCS guarantees 100% protection of the first £85,000 a saver deposits with an individual firm. |
| What about Laiki Bank UK? | What about Laiki Bank UK? |
| Same deal. Depositors in the overseas arms of any Cypriot bank will not be hit. | Same deal. Depositors in the overseas arms of any Cypriot bank will not be hit. |
| I'm an expat living in Cyprus? Will I be forced to pay the levy on my savings? | I'm an expat living in Cyprus? Will I be forced to pay the levy on my savings? |
| Yes, expats with savings in Cypriot banks will be hit. It is thought that around 60,000 British expats or Britons who own holiday homes will be hit by the levy. Collectively, they are thought to have around €2bn in Cyprus's banks – exposing them to a potential loss of around €170m or over €2,500 each. | Yes, expats with savings in Cypriot banks will be hit. It is thought that around 60,000 British expats or Britons who own holiday homes will be hit by the levy. Collectively, they are thought to have around €2bn in Cyprus's banks – exposing them to a potential loss of around €170m or over €2,500 each. |
| What happens if I am a soldier or a civil servant? | What happens if I am a soldier or a civil servant? |
| The chancellor, George Osborne, has announced the British government will compensate soldiers and civil servants. There are thought to be around 3,000 British military personnel and civil servants based in Cyprus. | The chancellor, George Osborne, has announced the British government will compensate soldiers and civil servants. There are thought to be around 3,000 British military personnel and civil servants based in Cyprus. |
| I'm an expat living in Cyprus. Could I lose all of my savings if a bank there goes bust? | I'm an expat living in Cyprus. Could I lose all of my savings if a bank there goes bust? |
| That depends on how much you have invested. Cyprus's own deposit protection scheme protects deposits up to €100,000 should a bank collapse – anything above that amount is potentially at risk. If you have a deposit in a foreign currency, the deposit will first be translated into euros (on the date the bank goes bust) before any compensation will be paid. Compensation will also be paid in euros. | That depends on how much you have invested. Cyprus's own deposit protection scheme protects deposits up to €100,000 should a bank collapse – anything above that amount is potentially at risk. If you have a deposit in a foreign currency, the deposit will first be translated into euros (on the date the bank goes bust) before any compensation will be paid. Compensation will also be paid in euros. |
| As the whole point of the bailout and levy is to help ensure that Cyprus financial institutions do not go bust, this shouldn't happen. | As the whole point of the bailout and levy is to help ensure that Cyprus financial institutions do not go bust, this shouldn't happen. |
| Top savings accounts | Top savings accounts |
| Manchester BS | Manchester BS |
| West Brom BS | West Brom BS |
| Derbyshire BS | |
| Powered by MoneySupermarket for the Guardian | Powered by MoneySupermarket for the Guardian |