Qualified advisers answering your
Financial Questions
call 0800 092 1245

Building society savings affected by new FSA rule

A new measure to protect building society savings deposits has been unveiled by the Financial Services Authority (FSA).The watchdog said that individual compensation allowance for savers would be retained for merging building societies until September 2009.This means that savers who hold deposits in both of two merging firms will be insured to the regulator's limit of £50,000 for each account.Jon Pain, the FSA's retail markets managing director, said: "The exception we are introducing today… will help existing savers with the societies who want to keep below the deposit protection limit and also reduce withdrawals from the successor society driven purely by compensation considerations on the part of savers."The building society sector has undergone a general move to consolidate, due to the credit crunch.Nationwide has taken over two smaller building societies, while Abbey and Alliance & Leicester are to be merged.This is due in part to the belief that larger societies - with larger balance sheets - are better-placed to survive the financial crisis and economic downturn.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details