New deposit protection limit coming on 1 January
3rd July 2015
Current £85,000 level of protection stands until the end of 2015
Savers are getting a new deposit guarantee limit from the New Year.
The current £85,000 level of protection continues until 31 December 2015. So there’s no immediate change for consumers. That means people with more than the new limit have six months to spread their money around to keep within it.
The new limit will be £75,000, which will protect more than 95% of all savers. The overwhelming majority of people have £50,000 or less in savings.
The change comes under the European Union Deposit Guarantee Schemes Directive. It fixes a harmonised limit of €100,000 (or the equivalent) across Europe. The new UK limit is set today.
There’s also other good news 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 qualify for the new protection limit.
Large companies and small local authorities (such as parish councils) will also benefit from FSCS protection from today. FSCS will cover them up to the new limit of £75,000.