The Up and Down of Bank Deposit Protection
Hard on the heels of the announcement that the amount of bank deposits guaranteed to be reimbursed in the event of the failure of a covered financial institution is to be reduced from £85,000 to £75,000 from 1 January 2016 comes the news that, for the first six months from the date of a major deposit, the deposit will be guaranteed up to £1 million.
The first change has to do with the falling value of the Euro. The legislation is intended to set the guaranteed sum at approximately €100,000.
The second change is to ensure that people who receive a large sum – for example a legacy from the estate of a relative – have a temporary period of cover.