From The BBC:
The Financial Services Authority (FSA) has raised the limit to the amount of deposits that are guaranteed should a bank go bust to £50,000.
The new limit will come into effect on Tuesday 7 October. Previously, the first £35,000 of savers’ deposits had been protected.
The FSA will now consult on whether the limit should be raised even higher.
Chancellor Alistair Darling said the increase meant 98% of account holders would have all their savings protected.
The new UK limit is for each customer so joint accounts will be guaranteed up to £100,000.
Mr Darling said the increase would “go a long way to assuring people that their deposits are safe”.
Ireland has introduced an unlimited guarantee covering bank deposits.
Banks in the UK have been concerned that savers would move their money to Ireland to take advantage of the 100% protection.
Banks covered
Payments will be made through the Financial Services Compensation Scheme (FSCS) and the FSA has said that it is to look into refor…
Leave a Reply