FSCS to protect Bank of Cyprus UK - Savings - News - Moneyfacts


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.

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

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 It is now over 6 months old so the content may be out of date.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

Find the best savings rates for you - Compare savings accounts

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 Any products featured may be withdrawn by their provider or changed at any time.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.