Savings protection up to £50,000

Today your savings in banks covered by the UK Financial Services Compensation Scheme (FSCS) are guaranteed safe up to £50,000 per institution. Darling has refused to come out and guarantee all savings as some other european countries have. 

Although 98% of UK accounts are covered by the £50,000 guarantee, this only covers 60% of the value of total UK savings, reflecting the fact that 2% of accounts hold 40% of savings.

The Guardian, 7 October 2008

Clearly the majority of people in the UK now have all of their savings guaranteed.  It might be time to stop the panic unless your money is in a bank not covered by the FSCS.

Savings limit goes to £50,000

The Financial Services Compensation Scheme (FSCS) will, from 7 October 2008, cover the first £50,000 of your savings.  This change has been planned for some time and has clearly been brought forward to limit the panic amongst jittery savers (myself included).

There is talk of simplifying the rules too, which would be helpful.  In the meantime, here’s a full breakdown on the FSCS website about the compensation limits.

Also, don’t forget that if you have a joint account you are covered up to £100,000 per institution.