Compensation limits to be simplified - Savings - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Compensation limits to be simplified

Compensation limits to be simplified

Category: Savings

Updated: 27/04/2009
First Published: 27/04/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Consumers will benefit from new compensation limits to be introduced next January following a review of the Financial Services Compensation Scheme (FSCS).

The changes are being made to give the limits greater consistency and therefore make it easier for consumers to understand the amount of protection they will receive if a firm goes out of business.

From 1 January 2010, the compensation limit for investments, mortgage advice and savings will be the same at £50,000 and all claims for non-compulsory insurance (both general and life insurance) will be paid at 90%, with no upper limit.

Loretta Minghella, chief executive of the FSCS, has welcomed the move, labelling the changes good news for consumers.

"They will be simpler and easier for consumers to understand and people will be able to see more clearly the protection the FSCS affords them. That will be good for consumer confidence which also benefits the financial services industry."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Just 44 savings accounts beat inflation

Inflation recorded another large jump during December, and predictably, this has had a devastating impact on the number of savings accounts that beat it, so much so that you’ll need to lock your money away if you want an inflation-beating return.

Just 47% have money in a savings account

We’re often told of the importance of saving, yet unfortunately, the message doesn’t always get through. Indeed, research shows that just 47% of those surveyed have money in a savings account, and 17% have no savings or investment whatsoever.

How much will you save this year?

Many of us have set savings goals for the year ahead, and planning to budget better and save more will be at the top of many financial resolution lists. But how much are you hoping to squirrel away? Encouragingly, many people have impressive targets.
 
Close