The Prudential Regulation Authority has announced changes to the FSCS deposit limit and a new lower level of protection from the Financial Services Compensation Scheme.
FSCS deposit limit to drop to £75k
The change takes place on January 1st 2016. Retail customers and small business deposit protection at the current level of of £85,000 continues until 31 December 2015, after which a new protection limit of £75,000 is applied.
The FSCS Deposit Guarantee Schemes Directive sets the FSCS deposit limit at the sterling equivalent of 100,000 Euros.
This protection level was set at was set at £85,000 in 2010. At that time this was €100,000. The value of the sterling has increased against the Euro and government is bringing the level into line.[thrive_toggles_group"]
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The PRA (Prudential Regulator Authority) have to review the deposit level every 5 years and the government has said that it will seek to minimise disruption. It states that 95% of all depositers will still be fully protected under the new level. You can read more about the FSCS deposit protection here on the FSCS site.
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