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Savings Guarantee Rises to £50,000

Savings and ISAs

Ed Bowsher
Updated on 17 February 2009 | 19 Comments

If your bank goes bust, the compensation scheme can now pay out a maximum of £50,000 instead of £35,000. This is welcome news but it doesn't go far enough.

We've written many times in recent weeks about the Financial Services Compensation Scheme. In a nutshell, it will compensate savers if your bank goes bust. However, the maximum compensation on offer until now has been £35,000.

Today the Financial Services Authority has announced that the maximum compensation will rise to £50,000 from Tuesday. In all other respects, the scheme hasn't changed. You can read more about the nuts and bolts of the scheme here.

Today's news is welcome. But it doesn't go far enough. At The Fool, we think that the government should guarantee all deposits at UK banks - as has happened in Ireland. It's a drastic measure but we believe it's the only way to restore full confidence to the UK banking sector. Read more about our view in this article by Cliff D'Arcy.

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08 October 2008
Go to http://www.fscs.org.uk[br/][br/]The page you will want is http://www.fscs.org.uk/consumer/How_to_Claim/
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08 October 2008
Can anybody tell me how one claim against the fscs?[br/]I currently hold some £37000 in ice bank. (£31000 of this in a 2yr fixed term bond, expiring in oct 09 and the remainder in an 'easy access' account.)[br/]I have attempted to contact the FSCS,Icebank & Landbanski direct but have received no answer.[br/] [br/]bibbia
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06 October 2008
I feel like the world is about to collapse, with 8 buy to let flats, my pension invested in stocks and shares and a fair amount of my cash in Icelandic Banks (albeit below the £35k compo limit). What do you do other than just sit tight and hope for the best.
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