Financial Services Compensation Scheme Deposit Protection Limit Changes on 1st January 2016

23 December 2015

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The Financial Services Compensation Scheme (FSCS) is a scheme provided by the UK Government. The scheme protects an amount of your money should anything happen to your bank, building society or credit union.

From 1st January 2016, the FSCS deposit protection limit is set to change, and this will apply to all banks, building societies and credit unions based in the United Kingdom.

The two changes that will affect UK savers are as follows:

  • For individuals the level of cover will change from £85,000 to £75,000 per bank, building society or credit union
  • For joint account holders each account holder will be covered up to £75,000 per bank, building society or credit union
According to the FSCS, the new limit of £75,000 'will protect more than 95% of all savers, with around 93% of consumers having 50% or less in savings'.

There is also 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. Areas including the proceeds from a house sale qualify for this new protection limit.

You can find some useful question and answers on the FSCS compensation arrangements here.

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