Account Protection
Account Protection
When opening a savings account, check to see if the bank has signed up to The Banking Code, which states that all banks signed up must offer a fair service and provide certain information to its customers, like APRs. Find out more information by visiting the British Banker’s Association website at www.bba.org.uk. Further information can also be found on the Financial Services Authority (FSA) website at www.fsa.org.uk
Additionally, there is the Financial Services Compensation Scheme (FSCS), which helps protect people who may lose money they had saved with a recently-collapsed company.
However the rules governing compensation payments were changed by the FSA on 3 October 2008 . With effect from 7 October 2008 100% of deposits are protected to a limit of £50,000 per person should any firm be in default.
Deposit claims against firms that were declared in default between 1 October 2007 and 6 October 2008 the compensation level is £35,000 (100% of £35,000).
Claims for deposits against any firm declared in default made before 1 October 2007 the level of compensation available is £31,700 (100% of the first £2,000 and 90% of the next £33,000).
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