Cash held in banks and Building Societies have been protected by the Government through the FSCS (Financial Services Compensation Scheme) for up to £85,000 for each banking group.
From the end of the year, however, the level of this protection will be reduced to £75,000. This is a reflection of the increase in the value of the pound against the euro. The underlying European legislation stipulates protection in euros - 100,000 euros. There is a five yearly review. In 2010 the value of 100,000 euros was £85,000. When the review was done earlier this year, 100,000 euros were determined to be worth £75,000, hence the need for the change. If you have arranged your finances based on the £85,000 rule, you will need to review your deposits and bring them down to the new £75,000 level which is the maximum protection in case the banking institution
the money is with goes under.
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