Changes in Financial Services Compensation Scheme

Changes in Financial Services Compensation Scheme (FSCS) Compensation Limit for Deposit Accounts

Currently, if you have investments held in deposit accounts with any single bank or building society, your money, up to the value of £85,000 per bank or building society, benefits from the protection offered by the FSCS. This means that if you have £85,000 held on deposit, and the bank or building society with which the investment is held were to fail, the FSCS will ensure that you will not lose any of your money. Anything above this amount is not protected, so you may lose anything above this value. You should therefore ensure that no more than £85,000 is held with any one bank or building society.

On 1st January 2016, this compensation will reduce to £75,000. If you have funds in excess of £75,000 held with any single bank or building society, you need to be aware of this reduction in the level of protection and consider diversifying your investments between different banks or building societies.

If you would like advice on how to diversify your savings ensuring you have the best interest rates available and ensure your funds are fully covered by the FSCS, please make an appointment to come in for a chat.