Your savings up to £85,000 will now be safe should a bank or building society collapse from now, following a £10,000 rise in the level of protection.
The safety net for your hard-earned savings, those precious pounds up to £85,000, has just been reinforced against the ever-looming specter of a financial institution’s collapse. With a timely and reassuring gesture, the protection umbrella has been broadened by a notable £10,000, ushering in a new era of security for your funds.
The protection covers money in current accounts, savings accounts, and cash ISAs.
The level of compensation payable is set at €100,000 across the European Union and hence significant currency moves can alter the level for UK savers. With this in mind, the change means that protection returns to pre-July 2015 levels.
This means that under the Financial Services Compensation Scheme (FSCS), up to £85,000 per person, per institution is now protected if a bank, building society or credit union goes bust. In other words, if your bank or building society were to collapse, you will get any money in these accounts – up to £85,000 – paid back in compensation.
Joint accounts have a protection level of £170,000.
Given the relative weakness of Sterling after the Brexit referendum, we had expected the welcome increase in the level of compensation and this will clearly protect even more of peoples’ savings. We understand that the new limit protects about 98% of people, so it is worth everyone knowing their protection level.