Savings up to £35,000 now fully protected
In an attempt to restore consumer confidence in the UK banking system following the well reported problems with Northern Rock, the Financial Services Authority has announced a change to their rules that will see compensation limits for savings increased to 100% of the first £35,000. The change came into force on the 1st October 2007.
This increase means that, should a bank, building society or credit union go into default from 1st October 2007, an individual who has lost savings will be able to claim compensation up to 100% of the first £35,000. Anything above £35,000 is not protected under the FSA scheme.
Joint accounts holders are covered separately by the scheme and therefore could be eligible for maximum combined compensation of up to £70,000 per institution.
Chancellor, Alistair Darling, recently floated ideas for an overhaul of the compensation scheme for savers including increasing protection to cover deposits up to £100,000. But the new rules unveiled today fall short of .