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Savings Protection is Increased
7th February, 2011
Smailes Goldie Chartered Accountants, in Hull and Barton-upon-Humber, are reporting that the amount of savers' money which is safeguarded should a bank or building society collapse has been increased from £50,000 to £85,000.
The new limit for the Financial Services Compensation Scheme (FSCS) took effect from 31 December 2010.
Ian Lamb, Partner at Smailes Goldie, said:
"As well as a higher compensation limit, savers are also set to benefit from a quicker service, with much of the money to be paid within seven days and the remainder within 20 days. The practice of deducting any money a saver may owe to the same institution – such as a mortgage or other loan – from their payouts will also be scrapped.
"However, savers who hold accounts with building societies which have recently merged should be aware that temporary rules giving separate protection to accounts in each institution have now come to an end. Anyone whose combined holdings exceed the FSCS limit may wish to move some of their funds elsewhere"
For more information or advice, please contact Smailes Goldie Chartered Accountants on Hull 01482 326916 or Barton 01652 632927.
