New £85,000 savings safety limit, from Fri 31 Dec cap jumps from £50,000
30 December 2010 @ 15:10
From Martin's MoneySavingExpert site..
Up to £85,000 savings per person, per financial institution will soon be protected by the govt's Financial Services Compensation Scheme (FSCS) bringing us in line with the EU's €100,000 limit...
Use fewer accounts to earn more. The golden rule's always been spread savings in different institutions to get 100% protection. The new cap means you need fewer accounts (eg, if over the limit £160k requires 2, not 4) so consolidate into the highest payers (see below).
It must be fully UK regulated. Some EU banks opt to rely on their home country's protection, eg, ING Direct savers depend on a Dutch govt bail out. Check if yours is non-UK regulated.
It's per institution not per bank. Sister banks Halifax and Bank of Scotland share a licence, so total protection's £85,000 for all accounts in both. Other sisters NatWest and RBS have separate licences so you get £85,000 in EACH. Check your bank's links.