FSCS confirm new limits

The Financial Services Compensation Scheme (FSCS) has confirmed that the limit of protection for savers will increase from the current level of £50,000. The revised limit, due to be introduced in January will be 100,000 Euros.

The change has been announced to bring the UK into line with European Legislation.

Currently savers are covered up to £50,000 per UK regulated institution and £100,000 for joint accounts.

The exact limit in sterling has not been decided by the FSCS as they have not confirmed the exchange rate to be used.

However if the current exchange rate was to be implemented the compensation level would increase to approximately £85,000.

Consultation will take place in October 2010.

For more information on the role of the FSCS and the extent to which your savings and investments go to the FSCS website.