Pictured above: Richard McNeilly
Dains, Midlands based Chartered Accountants and Business
Advisers accountants are reporting that the amount of savers' money
which is safeguarded should a bank or building society collapse has
been increased from £50,000 to £85,000.
The new limit for the Financial Services Compensation Scheme
(FSCS) took effect from 31 December 2010.
Richard McNeilly, Partner at Dains said "As well as a higher
compensation limit, savers are also set to benefit from a quicker
service, with much of the money to be paid within seven days and
the remainder within 20 days. The practice of deducting any money a
saver may owe to the same institution - such as a mortgage or other
loan - from their payouts will also be scrapped.
"However, savers who hold accounts with building societies which
have recently merged should be aware that temporary rules giving
separate protection to accounts in each institution have now come
to an end. Anyone whose combined holdings exceed the FSCS limit may
wish to move some of their funds elsewhere".