Bank accounts – individuals’ savings protected

9 October 2008

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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