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Deposit Protection Scheme Limit Increases

Following European legislation the compensation limit for UK depositors will increase from £50,000 to €100,000 (ca £85,000) from 1 January 2011.

The previous day the Financial Services Compensation Scheme denied that it intended to reduce cover for savers....

However it seems that the change is subject to a consultation process to be initiated by the FSA

In June 2009 FSA had reported:

"The European Union Deposit Guarantee Schemes Directive (DSGD) has recently been amended to introduce an EU-wide common deposit protection limit of €100,000 from 31 December 2010. But this amendment will only take effect if the EU Commission reports that such a change would be appropriate and financially viable for all EU Member States. The Commission's report is due by the end of this year, but even then it may not be clear what the eventual outcome will be. In these circumstances the FSA has decided that an extension to December 2010 is the right course now allowing a permanent decision to be made later when the final DGSD position is known."