29th December 2015
Savers have a new level of FSCS protection from 1 January. The limit for deposits is now £75,000.
The new limit replaces the previous £85,000 limit, which was in place for almost five years. It protected about 98% of consumers.
The new limit results from the European Union Deposit Guarantee Scheme Directive, which reset the limit in July 2015. The change follows a six-month transition period that gave anyone with balances exceeding the new limit time to adjust their balances before it came in.
Mark Neale, FSCS Chief Executive, says "The good news is that the new limit will protect some 97% of people, with about 93% of consumers having £50,000 or less in savings. What hasn't changed is the service FSCS provides consumers should the worst happen to their bank, building society or credit union. We continue to be there for them."
FSCS has come to the aid of millions of people since 2001 while paying out more than £26bn in compensation. It protects deposits, insurance, investments and mortgage broking.