European rise looms for FSCS
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The Financial Services Compensation Scheme limit will “almost certainly” increase to €100,000 (£89,500), according to City minister Lord Myners.
The FSCS has upper compensation limits of £50,000 for individual savers and £100,000 for couples if a bank goes bust.
Myners said: “The FSCS limit of £50,000 is almost certainly going to be increased due to EU action.”
The European Commission is in the later stages of a consultation on deposit compensation limits, which proposes an inc rease in the limit from €50,000 to €100,000 across member states.
FSA chief executive Hector Sants said deposit services within the banking industry do not lack trust because there are mechanisms to protect consumers.
He said: “Effectively, once we get €100,000 consumer protection limits coming in through European directives, most normal people in this country will be protected.”
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