The Financial Services Compensation Scheme (FSCS) has announced the launch of a new TV and advertising campaign to reassure consumers about their savings and investments, and their compensation levels being brought into line with European rules.
The campaign will also raise awareness about the new level of protection that the FSCS now offers to savers, as from the start of this month the organisation guarantees savers the first GBP85,000 in a deposit account if their bank or building society goes under. With the previous level of guarantee being GBP50,000, this is a major rise in individual protection; also, those with joint accounts can be protected up to GBP170,000 between them.
The FSCS have also introduced a speedier payout process, which should allow most claimants to receive their payment within one week, while the remainder will get theirs within three weeks. It is worth noting, however, that this protection is only assured for a single banking institution, rather than a brand, so the GBP85,000 maximum guarantee only covers one account within a large high street bank .
Mark Neale, chief executive of the FSCS, commented “The FSCS provides a vital function in helping build consumer confidence which contributes to financial stability. Were launching this campaign to make sure consumers know the FSCS and the protection it provides should an authorised financial services firm go bust.”
He added “We want consumers to check how FSCS protection applies to their own individual circumstances and be reassured their money is safe.”
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Tags: Savings, Savings Investments
Posted January 14, 2011 by John Wane under Financial News