Tuesday 21 December 2010

Safer Deposits

Good news for savers (finally) in that the FSA have confirmed that the deposit security (the compensation scheme) will increase from £50,000 to £85,000 from 1st January 2011.

Further changes coming into effect on 31 December 2010 are:

•Fast payout rules, with a target of a seven day payout for the majority of claimants and the remainder within the required 20 days.

•Gross payout, which protects customers by ring fencing their deposits if they have savings and loans with the same firm. Currently, any outstanding loan or debt would be deducted from any compensation.

•This new pan European requirement replaces the existing UK arrangement which has been in place since 2009, and which allowed for separate compensation cover for customers with deposits in two merging building societies.


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