The 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 ...