The net limit for how much of your money will be protected if a bank, building society or credit union were to collapse has increased today from £75,000 to £85,000. It was only reduced to £75,000 in January last year.
£10,000 boost for Financial Services Compensation Scheme limit.
The amount the Financial Services Compensation Scheme (FSCS) protects for deposits will increase by £10,000 on 30th January 2017. The Prudential Regulation Authority confirmed the change on 16 January 2017.
Joint accounts will also benefit from the increase with a new limit of £170,000.
Mark Neale, chief executive of the Financial services Compensation Scheme, says boosting the limit will protect more people. “The £85,000 limit protects about 98% of the UK public. More people will have more protection for more of their money.”
Who is eligible for protection under the FSCS?
The FSCS is the UK’s statutory fund of last resort for customers of financial services firms authorised by the Prudential Regulation Authority (“PRA”) and/or the Financial Conduct Authority (“FCA”). European firms (authorised by their home state regulator) that operate in the UK may also be covered.
If the firm is authorised by the UK financial services regulators you will have access to the Financial Ombudsman Service and to the FSCS. You can find out whether a firm is authorised by using the Financial Services Register. You can also find out about the status of a firm by telephoning the FCA’s Consumer Helpline on 0800 111 6768. They will be able to tell you if the firm is still authorised to trade, and how to get in touch with it.
To see if your money is working as hard for you as it can, contact Anstee & Co and request a free initial financial planning meeting with one of our expert financial advisers.