Bank of Cyprus UK

[David_&_Letitia]

Hi everyone,

I have been checking out this site for over a year now, but it's still 2 years before Letitia and I retire to Cyprus.

However, the long term planning has started in earnest, and I was wondering if anyone has had any experience of opening an account with Bank of Cyprus UK.

As I understand it, this is no longer a UK Brach of Bank of Cyprus PLC (ie a Cypriot Company), but a UK based subsidary which is regulated by the FSA and will therefore be subject to the Financial services Compensation Scheme (FSCS). Under this scheme, up to £85k is protected per person per account (so a joint account has £170k protecion). This is clearly better than the €100k protection offered by Bank of Cyprus.

Specifically, I am asking whether an account with Bank of Cyprus UK would suffice for all banking needs (Direct Debits, Standing Orders etc) in Cyprus. If so, it would seem sensible for us to open an account here now, in order to build up some sort of customer relationship before moving out to Cyprus in 2 years time.

[Vegaanders]

Originally Posted by David_&_Letitia

Hi everyone,

I have been checking out this site for over a year now, but it's still 2 years before Letitia and I retire to Cyprus.

However, the long term planning has started in earnest, and I was wondering if anyone has had any experience of opening an account with Bank of Cyprus UK.

As I understand it, this is no longer a UK Brach of Bank of Cyprus PLC (ie a Cypriot Company), but a UK based subsidary which is regulated by the FSA and will therefore be subject to the Financial services Compensation Scheme (FSCS). Under this scheme, up to £85k is protected per person per account (so a joint account has £170k protecion). This is clearly better than the €100k protection offered by Bank of Cyprus.

Specifically, I am asking whether an account with Bank of Cyprus UK would suffice for all banking needs (Direct Debits, Standing Orders etc) in Cyprus. If so, it would seem sensible for us to open an account here now, in order to build up some sort of customer relationship before moving out to Cyprus in 2 years time.

Hi!
I am a little confused about the difference between the EU model and the FSCS.

Reading on FSCS homepage state that compensation is paid out with max 85000 pound per person per bank, (not account). Nothing is said about paying the double if it is a joint account.
Can you tell me where you have got this information, because it is good to know.

Regards

Anders

[Vegaanders]

Originally Posted by Vegaanders

Hi!
I am a little confused about the difference between the EU model and the FSCS.

Reading on FSCS homepage state that compensation is paid out with max 85000 pound per person per bank, (not account). Nothing is said about paying the double if it is a joint account.
Can you tell me where you have got this information, because it is good to know.

Regards

Anders

Sorry, but I found it in the FAQ

You are right, they compensate up to per person in a joint account

Anders

[Vegaanders]

I found that you are wrong in that the UK scheme is better then the EU one. Also the DPS pay the double to a joint account

From Cyprus Central Bank Homepage

"In case two or more persons are jointly entitled to a deposit, for the purposes of
compensation, each of them shall be treated as having a separate deposit of an amount .calculated by dividing the credit amount in the account to which they are jointly entitled by the number of persons so entitled, unless specific evidence or special contractual terms determining the particular amount belonging to each of the beneficiaries of the joint account so exist."

Just to clarify

Anders

[David_&_Letitia]

Originally Posted by Vegaanders

I found that you are wrong in that the UK scheme is better then the EU one. Also the DPS pay the double to a joint account

Thanks for the correction Anders, I didn't know that the DPS would also pay double. At current exchange rates, however, that would still mean €200,000 which would equate to £157,093 which would therefore not be as good as the FSCS. However, it would be rather churlish of me to still maintain that the FSCS is better because exchange rates can vary. I believe, however, that my money would still be safer in a UK regulated bank account, as the UK Govt would almost certainly underwrite bank debts for UK savers. They did this with Northern Rock, RBS and even Icesave - an Iceland based bank. I would be less certain that the Cypriot Govt would be in a position to do the same.

Another point: Under the FSCS, the deposit guarantee is not per account as I said earlier, nor is it per bank as you said earlier. It is per institution. The difference is very important. For example, in the UK the Halifax and Bank of Scotland are different banks, but are the same institution, so only £85,000 (£170,000 Joint account) is protected even though a saver may have more than this amount between the two banks, as they are one institution.

My real reason for starting the thread though, is to find out whether it would be possible for an account with Cyprus bank UK to pay Direct Debits, Standing Orders etc to Cypriot accounts (eg utilities, Cytel etc).

[Vegaanders]

Originally Posted by David_&_Letitia

Thanks for the correction Anders, I didn't know that the DPS would also pay double. At current exchange rates, however, that would still mean €200,000 which would equate to £157,093 which would therefore not be as good as the FSCS. However, it would be rather churlish of me to still maintain that the FSCS is better because exchange rates can vary. I believe, however, that my money would still be safer in a UK regulated bank account, as the UK Govt would almost certainly underwrite bank debts for UK savers. They did this with Northern Rock, RBS and even Icesave - an Iceland based bank. I would be less certain that the Cypriot Govt would be in a position to do the same.

Another point: Under the FSCS, the deposit guarantee is not per account as I said earlier, nor is it per bank as you said earlier. It is per institution. The difference is very important. For example, in the UK the Halifax and Bank of Scotland are different banks, but are the same institution, so only £85,000 (£170,000 Joint account) is protected even though a saver may have more than this amount between the two banks, as they are one institution.

My real reason for starting the thread though, is to find out whether it would be possible for an account with Cyprus bank UK to pay Direct Debits, Standing Orders etc to Cypriot accounts (eg utilities, Cytel etc).

I really dont know but I can think of other disadvatages. If you need cash money in an ATM you probably has to pay fees because its cash redrawel abroad. My German banks charge alot for this, I am very much hit by this fees because I spend most of my working time outside Germany.

As I wrote in another post I really dont think your money is safer in UK. I am 100% sure that Cyprus also will honour the DPS as well as other Eu states. I have never understood why UK must have its own scheme, but there is a lot that UK do in its own way, good or bad

Anders

[David_&_Letitia]

Originally Posted by Vegaanders

I have never understood why UK must have its own scheme, but there is a lot that UK do in its own way, good or bad

Many, if not most of our EU partners may also not understand. However, the UK scheme predates the European scheme, so why does the EU so often follow our lead and then afterwards question why we didn't follow them?

[PeteandSylv]

I don't know for sure but I don't think the UK BOC account will work very well dealing with account payments etc over here if it will at all.

For a start if you pay direct debits over here you will be exchanging into Euros with fees and an inferior exchange rate.

Far better to have a proper Cyprus account with BOC or Laiki and use Currency Fair as the exchange method from any UK bank. You can do everything online and my last transaction from a UK bank to a Cyprus bank via Currency Fair took just 2 days to get accessible money here. 1 day of which was Laiki's overnight posting.

Pete