New £85,000 savings safety limit Introduced in 2011

Happy new year everyone, and now for some good news to start the year of if you are a UK citizen as of today ( 1 Jan 2011 ) Every UK REGULATED account jumps from £50,000 to £85,000 protection.

All UK regulated current or savings accounts and cash ISAs in banks, building societies and credit unions are covered by the government-backed Financial Services Compensation Scheme (FSCS). So if the bank fails, you’d get back up to £85,000 per person per financial institution, usually within a couple of months.

Quick tips

1) Cash in joint accounts counts as half each, so together you’ve £170,000 protection.

2) The Financial Services Compensation Scheme (FSCS) only applies to organisation,s regulated by the Financial Services Authority (FSA). Some EU banks opt to rely on their home country’s protection, eg, ING Direct savers depend on a Dutch govt bail out.

3) 100% of the first £85,000 you have saved per financial institution is protected. Never keep your eggs in the one basket always spreads your risk across instituations ( This same APPROACH toward your broker/s is also essential  )  .

BarCap fined £1.1m over client cash risk

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