Savings: Compensation limit set to rise

Compensation limit set to riseFrom next week, savers will receive a boost to the level of protection they get if their bank or building society goes bust. Currently, the Financial Services Compensation Scheme (FSCS) protects up to £75,000 of savings per person, per institution. However, this will rise to £85,000 from 30th January. The limit is changing because of the falling pound, with the value of protection pegged broadly to 100,000 Euros. The new level of protection means that savers can deposit an additional £10,000 with each institution and be guaranteed to ...

Savings: Three problems for savers as compensation limit is cut

FSCS logoThe Christmas period may have distracted many savers, from the fact that their savings will now receive a lower level of protection, than was previously the case. From 1st January 2016, savings will only be covered up to £75,000 per person, per authorised institution by the Financial Services Copensation Scheme (FSCS), a £10,000 reduction on the previous level of cover. Responding to the change, Mark Neale, FSCS Chief Executive, said: "The good news is that the new limit will protect some 97% of people, with about 93% of consumers having £50,000 ...

SIPPs: Why SIPP fees might be about to rise

Why SIPP fees might be about to riseFears are growing that investors in Self-Invested Personal Pensions (SIPPs) could see fees rise sharply following an increase in the cost of regulation. All SIPP providers pay fees to the Financial Conduct Authority (FCA), as well as an annual levy to the Financial Services Compensation Scheme (FSCS), which “pays compensation if a firm is unable, or likely to be unable, to pay claims against it.” Miss-selling and toxic investments As anyone who has read our blogs over the past few years will know, the self-invested pension ...

Savings: Protection for savers to be cut

FSCSThe level of protection enjoyed by savers, with deposits held in UK registered banks and building societies, will be cut from 1st January 2016. Currently, money held by savers is protected in full, by the Financial Services Compensation Scheme (FSCS), up to a balance of £85,000 per person, per institution. However, following an announcement today by the Prudential Regulation Authority (PRA), this will be cut to £75,000 from the New Year. The change will apply to retail customers (individual savers) as well as small businesses and accounts held in Self-Invested Personal Pensions (SIPPs). Why has ...