Member Article

Banks to publicise protection levels for savers

Banks and building societies are to be required to display posters and stickers explaining which compensation schemes are applicable to them under new rules.

The publicity is set to come into place on the 31 August, after is was first suggested in December 2011.

Savers who have money in UK banks and some foreign banks will be covered by the £85,000 limit of the Financial Services Compensation Scheme, but people using bank branches from the European Economic Area will have to rely on the bank’s national scheme.

Andrew Bailey, the FSA’s director of UK banks and building societies said: “Too many people assume that because their branch is located on a local high street in the UK, they are covered by the FSCS.

Savers with money in UK branches from within the EEA will now be covered by the equivalent of 100,000 euros, rather than the UK limit of £85,000. At the current rate their savings will be lower than the UK one at £80,170.

This was posted in Bdaily's Members' News section by Ruth Mitchell .