From The BBC:
Savers will be compensated faster for lost savings if a bank, building society or credit union goes bust, the City watchdog has announced.The Financial Services Compensation Scheme protects up to £50,000 per saver per institution if a bank goes under. Now the Financial Services Authority (FSA) has announced that from 2011, compensation will be paid within 20 days, or preferably within a week. The banking crisis prompted many savers to spread their funds for safety. Since queues formed outside Northern Rock branches in 2007, the rules about deposit protection have come under scrutiny.
The Financial Services Compensation Scheme (FSCS) charges a compulsory levy on the UK’s financial services industry that would cover compensation for savers if a UK bank were to go bust. Tough testThe compensation scheme has been tested following the collapse of high-profile banks such as Icesave.
At present, payouts for savers with failed banks can take up to six weeks. The new rules would mean th…
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