Deposit Protection Cut

Deposit Protection Cut

Something you may have missed:-

On 3rd July the Prudential Regulatory Authority cut the level of deposit protection to £75,000 with effect from 1st January 2016. The Sterling equivalent of the 100,000 Euro limit must be re-calculated every 5 years.

The EU figure is a minimum and member states may offer additional protection which the Treasury has temporarily done by keeping the old limit until the beginning of the year.

Clearly this will have repercussions for investors holding large cash deposits with financial institutions, perhaps up to the £85,000 threshold, and who may now need to undertake a review of such accounts. This of course may include Cash ISAs.