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Hot Topic – Now your savings are even safer

Hot Topic – Now your savings are even safer

Category: Savings

Updated: 31/10/2008
First Published: 01/10/2007

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 It is now over 6 months old so the content may be out of date.

The Northern Rock crisis has resulted in some good news for savers – as from October 1st 2007, the Financial Services Compensation Scheme (FSCS) has been expanded to protect even more money deposited in UK banks and building societies.

Out with the old…

  • Previously, savers were guaranteed 100% of the first £2,000 worth of savings
  • Then just 90% of the next £33,000
  • This would have left them just £31,700 should their bank go into administration

And in with the new…

  • Savers are now guaranteed 100% of their first £35,000 deposited
  • Going forward, Chancellor Alistair Darling said that he hopes to separate savers' money from the rest of the bank's assets, so that their money is as protected as much as possible.
  • However, he ruled out an unlimited protection of savings, indicating that the Government may aim to protect savings up to £100,000.

What protection is given to other products?

Insurance firm: The first £2,000 of an insurance claim or policy is covered in full, plus 90% of the balance. Compulsory insurance claims are covered in full.

What to do next

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 Any products featured may be withdrawn by their provider or changed at any time.