FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

Cash held in bank accounts “temporarily” protected

01/04/2015

People who have large amounts of money in their bank accounts for a small amount of time will now have their money protected in the event of their bank failing.

The Bank of England has announced that the Financial Services Compensation Scheme (FSCS) will be extended to include large sums of money that is in people’s bank accounts “temporarily”.

The FSCS can pay compensation to consumers if a financial services firm is unable, or likely to be unable, to pay them their money. Until these changes, the FSCS could only pay the first £85,000 on an account that was protected by the scheme. Now, as of 3rd July 2015, anyone who has up to £1 million in their account for less than six months could be compensated, should the inevitable happen.

These changes are in place for people who have a lot of money in their account because they are going through major changes in their life. These include people who have money due to:
- A house sale
- Redundancy money
- Wedding savings
- Compensation for criminal injuries or wrongful conviction
People claiming under these new rules will have to prove that the money was in their account only temporarily.

Need financial Advice?


If you have any personal finance questions related to this news article, please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.


Share this..

Related stories

Financial Guides

Financial Calculators

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



Latest News

Blogs

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
Continue