British savers unaware of savings accounts protection

Just 17 per cent of Brits are aware of new rules designed to protect savings held in bank or building society accounts, according to the Financial Services Compensation Scheme FSCS.

The new rules, which come into force on December 31st 2010, will increase the compensation received by savers who lose money when a bank or building society goes under.

With the best savings rates difficult to find in the current climate savers should be aware that the current compensation limit will be increased from £50,000 to £85,000 to comply with the Deposit Guarantee Schemes Directive.

As well as an improved compensation limit, faster pay-out rules have been implemented which means savers will receive their compensation much quicker than in previous years.

Mark Neale, chief executive of the FSCS, said: "The £35,000 increase provides a big boost in FSCS protection for UK consumers and should protect the vast majority of savers."

Bank of England deputy governor Charlie Bean recently urged Brits to spend their savings as a way of stimulating the UK economy.
 

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2010-12-30 13:05:02 © Moneyextra.com