From Jan 2016, your Bank Account £85k saving compensation will reduce to £75k

[Zak33]

The existing limit to the Financial Services Compensation Scheme (FSCS) is £85,000 per account.
But from Jan 1 2016, the amount will be reduced to £75,000.

The compensation scheme is run under a European directive, which sets the limit at €100,000 across the whole of the European Union.
The precise sum in pounds for the next five years is set according to exchange rates on July 3.

http://www.bbc.co.uk/news/business-33384284

[Saracen]

Good to know. I'm diversified enough these days for it to not matter to me, though.

[peterb]

Is that per account or per bank? Iirc, it's per bank, and actually refers to to owning group, so for the purposes of the compensation scheme, (for example) NatWest and RBS are the same bank so the compensation limit is aggregated across all accounts.

But IANAFA or a lawyer.

[cptwhite_uk]

I believe you're absolutely right peterb. You need to ensure if your savings are with multiple banks they aren't headed by the same parent company, otherwise the set limit is aggregated between accounts owned per parent company. It rubbish that it's so unclear to the average man on the street, but if you have this level of savings you really should do your homework to make sure it's safe.

[Andy3536]

t rubbish that it's so unclear to the average man on the street

The average man on the street would never need to know ;-)

[cptwhite_uk]

probably true

[herulach]

I believe you're absolutely right peterb. You need to ensure if your savings are with multiple banks they aren't headed by the same parent company, otherwise the set limit is aggregated between accounts owned per parent company. It rubbish that it's so unclear to the average man on the street, but if you have this level of savings you really should do your homework to make sure it's safe.

Its actually a little more complicated than that, in that the cover is per registration, so HSBC for example has 3 HSBC (covers first direct) HSBC Private Bank & M&S Bank. Natwest & RBS are separate, but Halifax and BOS aren't etc.

[Saracen]

Its actually a little more complicated than that, in that the cover is per registration, so HSBC for example has 3 HSBC (covers first direct) HSBC Private Bank & M&S Bank. Natwest & RBS are separate, but Halifax and BOS aren't etc.

Quite right.

So to protect funds that exceed the limit, you have to spread them among banks/financial institutions covered by different FSCS registrations, keeping the amount under the limit for each.

[Zak33]

I know most people think this kind of thing is "outside normal people's lives" but you'd be amazed how many old people have this kind of money tucked away with no knowledge of these limits or protections.

Any Hexite might find themselves talking to Gran and mention it in passing as news and it might help start a discussion.