Investments  

Savers hit by reduction in protection for deposits

Savers hit by reduction in protection for deposits

The decision to reduce the FSCS deposit protection limit by £10,000 has been described as a blow to savers.

Last week the Prudential Regulation Authority announced the reduction to £75,000 from 1 January 2016.

At the same time the regulator announced that depositors with temporary high balances would be covered up to £1m for six months from the date the money was transferred into their account.

Article continues after advert

Anna Bowes, founder of Savings Champion, said: “This is a big blow to savers, especially if they have diligently split their savings up to make sure they are protected.”