Comment on the FSCS move to keep savings in merged building societies under separate registrations

Published:

27/11/2008

Topic:

Press Release,Money,Savings

Kevin Mountford, head of banking at moneysupermarket.com, said: "This is a sensible move by the FSCS."

"With a raft of society mergers feeding through, such as the Scarborough and the Skipton, savers with money in both totalling more than the £50,000 compensation limit would have had to look to move some of their money to stay under the compensation limit. And the last thing these newly combined societies need is an outflow of savings.

"The consultation on the limit by brand is also welcome. Last year HBOS famously moved from having each of its brands individually registered with the FSCS to a single group registration. In retrospect this looks like a bad move as sensible savers will now deposit no more than £50,000 in total with the group. Moving back to a brand by brand FSCS registration would enable these big institutions to take in far larger sums from savers on aggregate without falling foul of the compensation limit."

-Ends-

Download This Press Release

Download as RTF

Related Links

Related Resouces