Posted on September 25th, 2010 | Categories - Savings
The Financial Services Compensation Scheme (FSCS), which provides protection for savers with accounts in bank, building society or credit unions, is set to be raised to the equivalent of 100,000 euros, approximately £85,000, in January 2011.
The change, which comes as a result of alterations to European legislation rules, means that consumers will be able to get more of their money back in case the institution they bank with becomes insolvent or ceases trading.
Those affected and whose claims to the FSCS are valid will also receive their compensation payments within 20 days.
Currently the limit stands at £50,000, which was set during the banking crisis of 2008. A year before that, the limit was set at £35,000 illustrating the swift upturn in deposit protection over the past three years.
The new limit will draw British savers in line with the same level of protection as savers on the continent.
The exact figure is still under discussion and could change if rates fluctuate.