Which? uses cookies to improve our sites and by continuing you agree to our cookies policy

Savings compensation limit to rise

Savers entitled to €100,000 if their bank folds

Nationwide Branch

Savers will be given more protection in the event that their bank collapses, as the Financial Services Compensation Scheme (FSCS) aligns itself with the Euro pay-out.

The FSCS is to up the limit it will pay out to deposit account holders whose banks go bust to the equivalent of €100,000 on 31 December. 

The current limit of £50,000 will be increased in accordance with European legislation. It will mean that UK savings account holders will receive the same level of compensation as savers who bank with providers on the continent.

Consumer benefit

The increase will benefit all consumers who bank with a UK bank, providing they do not save with multiple brands that are members of the same banking group. 

For instance, Derbyshire, Cheshire and Dunfirmline building societies have merged with Nationwide, so the maximum limit would be spread across all accounts. 

This means that if you had £40,000 in a Cheshire Building Society account and £40,000 with Nationwide, and the parent bank collapsed, you would currently get only £50,000 back, rather than £80,000.

For more on the FSCS, see the Which? Protecting your savings advice guide.

pound coins

Which? Money when you need it

You can follow @WhichMoney on Twitter to keep up-to-date with our Best Rates and Recommended Provider product and service reviews.

Sign up for the latest money news, best rates and recommended providers in your newsletter every Friday.

Or for money-saving tips, and news of how what’s going on in the world of finance affects you, join Melanie Dowding and James Daley for the Which? Money weekly money podcast

For daily consumer news, subscribe to the Which? news RSS feed here. And to find out how we work for you on money issues, visit our personal finance campaigns pages.

Back to top