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FSCS to protect Bank of Cyprus UK

FSCS to protect Bank of Cyprus UK

Category: Savings

Updated: 06/06/2012
First Published: 06/06/2012

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 It is now over 6 months old so the content may be out of date.

British savers with funds invested with the UK arm of Bank of Cyprus will from July have their money protected by the Financial Services Compensation Scheme (FSCS).

Bank of Cyprus UK announced that the move is due to a restructuring of its business. It has assured customers that it will continue to be run by the same UK management team, meaning there will be no change to day-to-day banking.

Currently, up to €100,000 (about £81,000) of Bank of Cyprus UK savers' money is protected under the island's financial safety scheme. From mid July, however, up to £85,000 of each individual's savings will be protected under the UK 's FSCS.

The bank said its restructuring has been agreed in principle by the Financial Services Authority.

The move comes amidst growing fears over Cyprus 's financial health as a result of the eurozone crisis.

There are concerns about the tiny island's exposure to the struggling Greek economy, with the governor of the Cyprus 's central bank warning recently that it would probably become the next country to beg the EU for a bailout.

A Bank of Cyprus spokesman says the turmoil in the eurozone had sparked 'uncertainty' and its savers would be 'more comfortable' if protected in the UK .

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