WIREDGOV

The clock is ticking for anyone who has more than £75,000 in deposits. That’s the message from  FSCS as it reminds people about the new limit coming in January.

Those with balances exceeding the new limit still have time to act. They can move any balances exceeding the limit without penalty after moves by the regulator.

The current FSCS limit of £85,000 ends on 31 December 2015. That’s when the transition period to a new limit ends. From 1 January 2016, the new limit will be £75,000. Anyone who has more than this in their account may wish to consider moving the excess amount to an account with a separately authorised firm. 

The change results from the European Union Deposit Guarantee Schemes Directive, which reset the limit in July. The limit is the UK equivalent of €100,000.

The new limit will protect more than 95% of people with around 93% of consumers having £50,000 or less in savings.

Mark Neale, Chief Executive of the FSCS, says: “The £85,000 limit ends on 31 December 2015. People have time to adjust their balances if they have more than the new limit in their accounts. The good news is that the new limit will protect more than 95% of people and FSCS will continue to be there for them if the worst happens.”