Majority unaware of FSCS' deposit protection changes

From January 1st 2016 the maximum amount individual savers are protected for fell to £75,000, down from £85,000, to align with the EU agreed limit of €100,000.

54% were unaware aware that the UK’s deposit protection level had reduced, while a third (34%) of UK adults do not know what the FSCS is.

Whilst more than two in five (41%) are aware of the reduction in deposit protection levels, 31% said that it doesn’t bother them and they won’t be moving their savings. Just 6% said they will move their savings to ensure full protection and 4% said they’ve already opened another account.

Additionally, when asked what the most important things were when opening a savings account, interest rate (60%), online access (46%) and ease of opening the account (34%) topped the list of priorities. Having savings protected by a deposit compensation scheme was lower on the list of priorities (22%).

Steve Gowler, CEO of RCI Bank, said:

“The FSCS changed its protection levels limits to realign the UK with deposit schemes across Europe, which are all protected at €100,000. Our insight has found that more than half of savers are still unaware that their level of protection has decreased in recent days.
 
“Last year we saw a record number of new foreign entrants appearing in the UK savings tables who are protected up to €100,000 by their home schemes, including RCI Bank which is protected by the French scheme. As these new entrants offer similar levels of protection to the UK’s FSCS £75,000 limit as well as competitive rates, UK savers seem more willing than ever to try them out - and we see this trend continuing in 2016. As always, it is important that savers do their research, and ensure that they are comfortable with the level of protection offered by their bank.”