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Author: JP / / Latest News

From the 1 January 2016 the deposit protection limit is changing from £85,000 to £75,000

If your bank, building society or credit union fails, the Financial Services Compensation Scheme (FSCS) protects your eligible deposits up to the deposit protection limit.

If you have eligible deposits of more than £75,000, you are unlikely to be fully protected after 1 January 2016 so you may need to take action if you wish to remain fully covered by the FSCS.

Your eligible deposits held at the same bank, building society or credit union are added up in order to determine the coverage level. If, for instance, you hold eligible deposits in a savings account with £70,000 and a current accounts with £20,000, you will only be repaid £75,000 (or £85,000 for most depositors until 31 December 2015).

Limit of protection for joint accounts:-

In the case of joint accounts, the limit applies to each depositor. Up to the 31 December 2015, each depositor is covered up to £85,000, with the limit changing to £75,000 from 1 January 2016.

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