On Monday 30 January, the amount of eligible deposits that are protected by the Financial Services Compensation Scheme (FSCS) increased to £85,000 per individual (£170,000 for joint accounts).
The limit reflects the requirement for the deposit protection limit to mirror the European level of 100,000 Euros. It was reduced to £75,000 last summer following the pound’s rise against the Euro. However, as the value of the pound has fallen following the decision to leave the EU, the Prudential Regulation Authority has raised the UK limit to bring it back in line with the European level.
Savers should bear in mind that the limit is per individual, per bank, building society or credit union. If a bank has more than one brand name, then the limit is applied to the total deposits you have with all the brands of that bank.
Charter Savings Bank does not share a banking licence with any other bank or take deposits under any other brand name, so all your eligible deposits with Charter Savings Bank are protected up to the full £85,000.
For banks which are part of a bigger group operating under the same banking licence, the level protected will be a maximum of £85,000 (£170,000 for joint accounts) for all deposits held with that bank, even if the savings are held with different brands of that bank.
Paul Whitlock, Director of Savings at Charter Savings Bank, said: “Knowledge that your money is safe should anything go wrong is incredibly important to savers, something our own research confirms. We’re pleased that the Financial Services Compensation Scheme protection is going back up to £85,000, as it offers savers an increased level of reassurance.
“Savers across the country should take this opportunity to review the banks that currently hold their savings to ensure they don’t unwittingly hold savings twice with the same institution.
“Some banks, for example HSBC and First Direct, operate under a single banking licence, which means that protection is shared even if the money is held under different trading names.
“Although a banking collapse may appear unlikely, it’s always better to be prudent, and it’s a good idea to spread your savings across a number of providers with different banking licences to make sure it’s all protected should the worst happen.”
For more information, visit the FSCS website (https://protected.fscs.org.uk/About-FSCS/).