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Widespread unawareness of new savings rules

Widespread unawareness of new savings rules

Category: Savings

Updated: 03/01/2012
First Published: 03/01/2012

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 It is now over 6 months old so the content may be out of date.

There is widespread unawareness of savings rules that were introduced 12 months ago, new research has found.

On 31 December 2010 new rules were introduced across Europe which increased compensation limits to €100,000 (£85,000).

Savers had previously been covered to the tune of £50,000 per institution.

But despite the uncertain climate, four in five of those questioned were not aware the limit was £85,000, with 45% admitting they didn't know it, figures from the financial Services Compensation Scheme (FSCS) show.

Indeed, awareness has improved only fractionally from a year ago, when 17% of people said they were aware of the increased compensation limits.

"The £85,000 limit is good news for every saver in the country, with 99% of accounts now covered," said Mark Neale, chief executive of the FSCS.

"Although there have been no high profile failures over the last 12 months it is important for financial stability that savers are aware of the protection that is available to them.

"As only those financial institutions authorised by the FSA are covered by the FSCS guarantee it is vital that customers check their financial products are safe and remain within the limit.

"Although the industry has made significant progress in the information it provides to consumers about the FSCS, there is still much more to do."

UK consumers will soon find it easier to get information about the protection their savings enjoy thanks to new proposals for banks, building societies and credit unions from the Financial Services Authority.

It is consulting on new rules that will require firms to display information about FSCS protection on the front door and in branches.

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