Bank accounts – individuals’ savings protected

As of today, 7th October 2008, the first £50,000 of an individual’s savings will be protected, even if the bank becomes insolvent.

This protection is ensured by the Financial Services Compensation Scheme, whose website states: ‘The Financial Services Compensation Scheme (FSCS) is the UK’s statutory fund of last resort for customers of authorised financial services firms. This means that FSCS can pay compensation if a firm is unable, or likely to be unable, to pay claims against it.’

Previously, the limit had been £35,000, but the increase provides greater security to savers in the UK, who may be worried about the impact on their savings of the current troubles in the banking industry.

“At a time like this,” a spokesperson for Think Money commented, “many people are clearly worried about their financial security. It’s a huge relief to know that their savings in the bank are safe.”

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Financial Services Compensation Scheme

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.