Change in FSCS deposit protection scheme

Mrs_Mac_1

Got a letter from the bank today informing us that the Financial Services Compensation Scheme (FSCS) is changing the deposit protection limit for all banks, building societies and credit unions in NI and UK on 1 January 2016. From that date, the level of cover is reducing (from the current figure of £85000) to £75000. Just wondered does anyone know why and has there been a lot of information about this as this is the first we have heard of it??


Thanks
Mrs Mac

bigsy

In a nutshell, to quote the FSCS, "A European directive (the recast Deposit Guarantee Schemes Directive) sets a €100,000 deposit protection limit for depositor guarantee schemes across the EEA".

Under these rules the exchange rate into the local currency has to be reviewed every five years. The change from £85,000 to £75,000 reflects the recent strengthening of sterling against the Euro.

Not sure why you missed it - it was pretty widely announced, including on this site http://www.moneysavingexpert.com/news/savings/2015/07/safe-savings-limit-to-fall-to-75000-from-january

For more info see http://www.fscs.org.uk/what-we-cover/questions-and-answers/qas-about-limit-changes/#question0

Mrs_Mac_1

Thanks Bigsy! Not sure how I missed it either, I was just curious. I have nowhere near £75000 never mind £85000 in savings...more like £750, so it won't matter to me anyway.
Thanks again.
Mrs Mac

jtk174

You were not alone. I hadn't heard anything about it, until I got a letter from the Ulster Bank last week.
An account that I withdrew all money from 2 years ago and which they won't close unless I go into the branch!

I have not heard from Danske Bank, where my current account is now. I suspect they are waiting until the next time I overdraw, when they can write to me and charge £25 at the same time