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."
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