The Prudential Regulation Authority (PRA) has confirmed this week that the Financial Services Compensation Scheme (FSCS) protection level for deposits will be returning to £85,000 per person, per banking licence from 30 January this year. According to the FSCS, following this increase, 98% of savers will have full protection on their savings.
In July 2015, it was announced that the level was to be reduced by £10,000 to £75,000 which took effect from 1 January 2016, much to the disappointment and irritation of many savers.
Although a review of the limit should be undertaken only once every five years, the PRA is obliged to review the limit due to extraordinary unforeseen events and the strength of the pound against the Euro following the EU referendum result, was just such an event.
Savings providers have until the end of June to get all their promotional material changed back again, but you can rest assured that the new protection level is in place from 30 January for all providers who are part of the scheme.
Whilst this is great news for the majority of the population, if you are one of the 2% who are not fully protected, you may need to work a bit harder to make sure your savings are as safe as possible. This is where we can help.
By scouring the best buy tables and opening multiple accounts, you may be able to go a long way to making sure most, if not all, of your cash is protected, as well as earning the best rates. However, for many this is simply too time-consuming or dare I say it, too boring! So, we have our Concierge Cash Service that can take away much of the hassle.
For a small fee, we can find the best accounts, complete the applications forms and most importantly monitor the accounts once they are set up, so that you don’t have to. Let Savings Champion suggest when you need to move your cash and help you to do it.
For more information and to see how we can add value, call one of our advisers on 0800 321 3581.
If you have any questions or need any help, we’d love to hear from you. Call our savings experts on 0800 321 3581