Post by Fletchsmile on Aug 22, 2015 17:09:44 GMT 7
Had an email from one of my UK banks today outlining changes to the UK FCSC. Similar to Thailand's DPA. Worth a read, also on how fixed deposits/TD are to be treated in the transition period.
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What's changing
• For individuals: the level of cover is reducing from £85,000 to £75,000 per bank, building society or credit union
• For joint account holders: each account holder will have a level of cover up to £75,000
You can read more about the FSCS compensation arrangements below:
Changes to the Financial Services Compensation Scheme (FSCS)
On 3 July 2015, the Prudential Regulation Authority (PRA) announced that from 1 January 2016, the level of FSCS protection for personal and small business depositors will be reduced from £85,000 to £75,000. This limit applies to a customer’s total deposits held with the Royal Bank of Scotland. The following trading names are part of the Royal Bank of Scotland: Drummonds, Child & Co, Holts, One Account and Direct Line.
Summary of key changes
For individuals and small business depositors, the change to the compensation limit will not take effect until 1 January 2016. This means that until 31 December 2015 these customers will continue to be protected up to £85,000.
The change to the limit took immediate effect for large companies and small local authority depositors, who are new to the scheme. These customers are therefore protected up to £75,000 from 3 July 2015 onwards.
Until 31 December 2015 individuals and small business depositors who have balances of more than £75,000 with the Royal Bank of Scotland will be able to reduce their balances by up to £10,000 without incurring an Early Closure Charge (including fixed rate products). For example, if your total balance across deposit holding products is:
- £85,000 - you will be able to withdraw up to £10,000 without an Early Closure Charge
- £115,000 - you will be able to withdraw up to £10,000 without an Early Closure Charge and any further withdrawal will be subject to the Early Closure Charge associated with the relevant product(s).
- £74,999 or less – Customers wishing to access funds in one of our fixed rate products early would incur an Early Closure Charge in line with the terms of the account.
The compensation limit, and the right to withdraw excess funds above the limit free of Early Closure Charge or loss of interest applies to money held in:
- All Current Accounts
- All Savings Accounts – including cash ISAs, Fixed Term Savings Accounts and Fixed Rate Bonds
- Eligible Business Savings accounts
- Eligible structured deposit accounts, for example AutoPilot
More details including Q&A here
personal.rbs.co.uk/personal/savings/financialservicescompensationscheme.html
==============================================================================
What's changing
• For individuals: the level of cover is reducing from £85,000 to £75,000 per bank, building society or credit union
• For joint account holders: each account holder will have a level of cover up to £75,000
You can read more about the FSCS compensation arrangements below:
Changes to the Financial Services Compensation Scheme (FSCS)
On 3 July 2015, the Prudential Regulation Authority (PRA) announced that from 1 January 2016, the level of FSCS protection for personal and small business depositors will be reduced from £85,000 to £75,000. This limit applies to a customer’s total deposits held with the Royal Bank of Scotland. The following trading names are part of the Royal Bank of Scotland: Drummonds, Child & Co, Holts, One Account and Direct Line.
Summary of key changes
For individuals and small business depositors, the change to the compensation limit will not take effect until 1 January 2016. This means that until 31 December 2015 these customers will continue to be protected up to £85,000.
The change to the limit took immediate effect for large companies and small local authority depositors, who are new to the scheme. These customers are therefore protected up to £75,000 from 3 July 2015 onwards.
Until 31 December 2015 individuals and small business depositors who have balances of more than £75,000 with the Royal Bank of Scotland will be able to reduce their balances by up to £10,000 without incurring an Early Closure Charge (including fixed rate products). For example, if your total balance across deposit holding products is:
- £85,000 - you will be able to withdraw up to £10,000 without an Early Closure Charge
- £115,000 - you will be able to withdraw up to £10,000 without an Early Closure Charge and any further withdrawal will be subject to the Early Closure Charge associated with the relevant product(s).
- £74,999 or less – Customers wishing to access funds in one of our fixed rate products early would incur an Early Closure Charge in line with the terms of the account.
The compensation limit, and the right to withdraw excess funds above the limit free of Early Closure Charge or loss of interest applies to money held in:
- All Current Accounts
- All Savings Accounts – including cash ISAs, Fixed Term Savings Accounts and Fixed Rate Bonds
- Eligible Business Savings accounts
- Eligible structured deposit accounts, for example AutoPilot
More details including Q&A here
personal.rbs.co.uk/personal/savings/financialservicescompensationscheme.html
