The UK government must follow the example of its Irish counterpart and offer full protection to savings account holders, one expert has urged.
According to David Kuo, head of personal finance at Fool.co.uk, Ireland has "done the right thing" in guaranteeing the money of savings account and bond holders.
"It is high time that chancellor Darling stops dithering and safeguards the UK banking system too," Mr Kuo said.
The current system, which limits savings compensation to £35,000 per person per banking license, is "out of date" and "unnecessarily complicated", he added.
A limitless savings guarantee would restore confidence in the banking sector, Mr Kuo believes.
He urged the chancellor to prove UK banks are "completely robust" by fully backing them with such a pledge.
Recently, Kevin Mountford, head of banking at Moneysupermarket.com, claimed recent financial turmoil could mean people are able to take advantage of more attractive savings rates as banks look to attract cash deposits .
Government must fully protect savings accounts, expert states
Government must fully protect savings accounts, expert states
Wed, 01 Oct 2008
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