Savings protection limit increases to 85,000
From the 30th January 2017, the FSCS limit increased to £85,000. Here's some useful information about the FSCS, what you need to know and why the increase has happened.
What you need to know
- The FSCS deposit limit has increased by £10,000
- Your savings are now protected up to £85,000
- The limit for joint accounts is now £170,000
What is the FSCS?
The Financial Service Compensation Scheme (or FSCS) is the UK’s deposit guarantee scheme and protects savings up to £85,000 with authorised firms. The FSCS protects deposits in banks, building societies and credit unions. Deposit protection applies to individuals and small businesses. Joint accounts are also protected up to £170,000.
The FSCS aims to pay compensation within seven days of a bank, building society or credit union failing, although in more complex circumstances this could take up to 20 days. You wouldn’t need to do anything but it’s good to know you’re protected.
FSCS protects your savings for free video1
Why has the limit increased?
The Bank of England's Prudential Regulation Authority (PRA) decided to restore the protection limit to £85,000 back in November. The decision was made as a result of the value of the pound falling against the euro.
What do the FSCS have to say?
FSCS Chief Executive, Mark Neale, says the increase strengthens savings protection. “Increasing our limit means we’ll protect more money and more people. Our new limit will protect about 98% of the UK public. So people can be sure their money in banks, building societies and credit unions is safe2.”
For further information about how your money is protected, take a look at the official FSCS website.
1 - https://protected.fscs.org.uk/About-FSCS/
2 - https://www.fscs.org.uk/news/2017/january/new-85000-deposit-limit-from-today/