Savings accounts - frequently asked questions

Category: Savings
Date: 8/31/2008

This list covers the main UK banks and some of their subsidiaries operating abroad, showing you which brands operate under which firm'sFSA authorisation and defining how much of your client's savings is protected by the Financial Services Compensation Scheme.

The FSA has announced that it will introduce fast payout rules for the Financial Services Compensation Scheme and deposits will be ring fenced where a depositor has savings and loans with the same firm. The fast payment rules will see compensation paid within a target of seven days and all payments will be made within 20 days. Payouts will also be made on a gross basis. The new rules will apply to banks, building societies and credit unions from 31 December 2010.

Financial Services Compensation Scheme: 020 7892 7300

Deposit taking firm: the limit is 100% of the first £50,000 per individual. Insurance firm: 90% of the value of the claim without an upper limit. Compulsory insurance claims are covered in full. Investment firm: the limit is 100% of the first £50,000 per individual. Mortgage advising or arranging: the limit is 100% of the first £50,000 per individual. Full details can be obtained online from www.fscs.org.uk

Cyprus: Maximum level of compensation per depositor per bank is €100,000.

European Union deposit takers (including deposits with UK branches of those institutions): Minimum level of protection €50,000 per eligible depositor. The European Union is looking to increase this limit to €100,000 by 31 December 2010.

Gibraltar Deposit Guarantee Scheme: 100% of the total of all qualifying deposits up to a maximum of €50,000.

Guernsey: The first £50,000 per individual claimant per licensed bank.

Ireland: For institutions regulated in Ireland - deposit guarantee scheme covers 100% of first €100,000 per depositor per institution. Additionally 100% of all deposits are covered until 28 September 2010 under the Irish Government's guaranteed arrangement scheme with the following institutions: Allied Irish Bank, Anglo Irish Bank Corporation Ltd, Bank of Ireland, Educational BS, Irish Life & Permanent and Irish Nationwide BS.

Isle of Man: Compensation of Depositors Regulations 2008 as amended by the Compensation of Depositors (Amendment) Regulations 2008 - up to £50,000 of net deposits per individual depositor.

Jersey: Jersey's States Assembly has approved legislation to set up a Depositors Compensation Scheme (DCS) in the Island. The scheme provides protection of up to £50,000 per individual, per Jersey banking group, for local and international depositors in line with international standards.

Local Authorities: All monies borrowed by a local authority are secured on all the revenues of that authority (Local Government & Housing Act 1989).

Netherlands: All Dutch banks that operate under licence from De Nederlandsche Bank are covered by the Dutch deposit guarantee scheme. The limit is €100,000 per person per institution until 31 December 2010.