Posted by jonathanfullarton - December 10, 2015 10:26 am The FSCS deposit protection limit is changing

How does this affect you?

The Financial Services Compensation Scheme (FSCS) is a deposit protection scheme that provides a level of cover for your money should anything happen to your bank, building society or credit union.

The deposit protection limit is changing from 1 January 2016. This will apply to all banks, building societies and credit unions.

What is changing?

For individuals:

The level of cover is reducing from £85,000 to £75,000 per bank, building society or credit union.

For joint account holders:

Each account holder will have a level of cover up to £75,000.

For Business, Commercial and Corporate accounts protected by FSCS prior to 3 July 2015 and from that date onwards:

The level of cover is reducing from £85,000 to £75,000 per bank, building society or credit union.

In addition, from 3 July 2015, eligible deposits of large companies and small local authorities are also eligible for FSCS protection. For these customers the £75,000 deposit protection was immediately applicable as these deposits had previously not been protected.

If you hold more than £75,000 with one bank, building society or credit union

If your deposit was protected by the FSCS both prior to 3 July 2015 and from that date onwards, and you hold over £75,000 in accounts that do not allow instant access; some organisations are allowing clients to withdraw funds without triggering early closure penalties. For specific details you would need to contact your bank, building society or credit union.

The rules have not changed with regard to banks, building societies and credit unions sharing the same banking authorisation, so be careful to ensure that your money is protected even if it is invested in a number of different organisations.

**For further information and advice, please contact your usual McCabe Ford Williams partner. Alternatively, further information is available at the FSCS website