London Scottish Savings Are Safe - Savings - News - Moneyfacts


London Scottish Savings Are Safe

London Scottish Savings Are Safe

Category: Savings

Updated: 01/12/2008
First Published: 01/12/2008

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 It is now over 6 months old so the content may be out of date.

Depositors with the collapsed London Scottish Bank have been reassured that their savings are safe. Following the news that the bank had entered administration, the Government confirmed it would protect all savings held with the bank.

This includes deposits of more than £50,000, the amount currently promised to be protected under the Financial Services Compensation Scheme (FSCS).

The bank has around 10,000 depositors in a range of fixed term accounts. The FSCS said it will pay compensation to eligible customers as quickly as possible after their accounts mature, covering their deposits plus the interest owing under their terms and conditions.

"We know that customers of the firm will be concerned about the safety of their deposits," said Loretta Minghella, chief executive of the FSCS. "We have put plans in place to help customers of London Scottish Bank and are ready to act. As soon as we have access to customer contact details, we will write to depositors individually and provide more information on timescales. FSCS will do everything it can to get people their money back quickly."

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 Any products featured may be withdrawn by their provider or changed at any time.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

Average five-year fixed bond rate falls below 2%

Long-term fixed rate bonds used to be the top solution for savers looking to get a decent return on their savings, but unfortunately, times have changed, with our latest data revealing that the average five-year rate has fallen to a new record low.

Savings rates plummet to fresh lows yet again

It’s becoming a recurring theme, and unfortunately, it’s showing no signs of stopping. Savings rates have plummeted to fresh lows once again as the impact of the base rate cut continues – and this month, product availability has followed.

Less than half of savings accounts beat inflation

Official figures show that inflation jumped up during September, with CPI rising to 1%. Not only does this mean that consumers may begin to feel the impact on their wallets, but there are now far fewer savings accounts that will beat inflation.