Protection to increase for savers in January 2011

The protection limit for those who are lucky enough to have savings is to increase from £50,000 to the equivalent of €100,000 in January 2011.

Table of contents

Protection to increase for savers in January 2011

Protection to increase for savers

The protection limit for those who are lucky enough to have savings is to increase from £50,000 to the equivalent of €100,000 in January 2011.Under the Financial Services Compensation Scheme (FSCS) people in the UK are currently entitled to £50,000 worth of protection per UK regulated institution. This means that if your bank goes bust, up to £50,000 of your money is safe - £100,000 in the case of joint accounts.However, following European legislation, the FSCS has said that this limit will increase to the sterling equivalent of €100,000 on 1 January 2011.The exact limit is not yet known but the FSCS has confirmed that once the Financial Services Authority decides what exchange rate is to be used, the limit will be fixed and so will change as the pound fluctuates against the euro. The FSA plans to issue a consultation in October.The value to which people are protected against the downfall of financial companies became a matter of concern during the credit crunch as high street institutions such as Northern Rock, HBOS and Lloyds TSB were all in a precarious position and the collapse of investment firms such as Keydata has added to the public’s concern.On the back of ‘inaccurate’ media reports suggesting that the FSCS had plans to reduce the compensation protection for investments, the FSCS has said: ‘The FSCS has no plans to reduce compensation protection for investments as suggested, nor is it able to do so. The rules that the FSCS applies when assessing clams are made by the Financial Services Authority. These include rules that set the FSCS compensation limits. The FSCS cannot depart from these rules’.All of this is good news for those considering their estate planning and investments, whether they are small business owners, employed, self-employed or retired.

Join our Newsletter

Subscribe and get the latest updates about inheritance tax and Estate Planning into your mailbox.

Our specialist inheritance tax service is easier, simpler and more cost effective than instructing a Lawyer, Accountant or Financial Adviser.

Contact Us

Bluebond Tax Planning
5 PalmerstonDrive,

Tel: 020 8895 6157 (clients only)
Tel: 01582 832253 (suppliers only)


Watch how we solved our client Frank's inheritance tax problem and saved him both time and money.

We help UK residents with over £1 million in current assets pay ZERO in inheritance tax

One stop comprehensive specialist advice - Tax, financial planning and legal advice service with 18 years experience.

The information contained in this web site is for UK consumers only.  Like most firms of solicitors and accountants, Bluebond Tax Planning is not regulated by the FCA. The content of this website does not constitute FCA regulated financial advice and all content is provided for general information purposes only. Bluebond is not responsible for any action you may take as a result of information on this site. All advice will be delivered on a personal basis once we fully understand your situation and our client agreements have been signed.

Copyright © 2022
Copyright Notice
Legal Disclaimer
Terms & Conditions
Privacy Policy