3rd July 2015
From today, the Financial Services Compensation Scheme (FSCS) provides a £1m protection limit for temporary high balances held with a bank, building society or credit union if it fails.
The change comes from the European Deposit Guarantee Schemes Directive. It provides for an additional layer of protection for some consumers with higher balances.
People with some types of temporary high balances will have FSCS protection up to £1m for up to six months. Things like the proceeds from a house sale or a redundancy payment qualify for this new protection limit.
Mark Neale, Chief Executive of FSCS, says: “This is great news for people who have higher than usual balances in their bank, building society or credit union accounts. They can be reassured that if the worst happens FSCS will protect the money they have in their accounts above the usual deposit protection limit, in certain instances, up to £1m. And we’ll provide unlimited cover for the proceeds of personal injury claims.”