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Over half of UK adults are unaware that savings protection limits have changed
06 January 2016
RCI Bank has found that UK adults currently have a low level of awareness of the recent change to the UK’s Financial Services Compensation Scheme (FSCS) bank deposit protection limit. From January 1st 2016 the maximum amount individual savers are protected for fell to £75,000, down from £85,000, to align with the EU agreed limit of €100,000.


RCI Bank’s research, conducted by Opinium Research between 18 and 21 December 2015, revealed:

  • More than half (54%) of UK adults are not aware that the UK’s deposit protection level was reduced to £75,000 (from £85,000) on the 31st of December 2015.

  • A third (34%) of UK adults do not know what the FSCS is. More than two in ten (21%) knows what it is but do not know what the level is or that is was reduced on December 31.

  • Whilst more than two in five (41%) are aware of the reduction in deposit protection levels, 31% said that it doesn’t bother them and they won’t be moving their savings. Just 6% said they will move their savings to ensure full protection and 4% said they’ve already opened another account.

  • Additionally, when asked what the most important things were when opening a savings account, interest rate (60%), online access (46%) and ease of opening the account (34%) topped the list of priorities. Having savings protected by a deposit compensation scheme was lower on the list of priorities (22 per cent).

 

Steve Gowler, CEO of RCI Bank, said “The FSCS changed its protection levels limits to realign the UK with deposit schemes across Europe, which are all protected at €100,000. Our insight has found that more than half of savers are still unaware that their level of protection has decreased in recent days.

 

“Last year we saw a record number of new foreign entrants appearing in the UK savings tables who are protected up to €100,000 by their home schemes, including RCI Bank which is protected by the French scheme. As these new entrants offer similar levels of protection to the UK’s FSCS £75,000 limit as well as competitive rates, UK savers seem more willing than ever to try them out - and we see this trend continuing in 2016. As always, it is important that savers do their research, and ensure that they are comfortable with the level of protection offered by their bank.”

 

RCI Bank is part of Renault’s global banking group and launched in June 2015. Customers are protected by the French deposit guarantee scheme up to €100,000. Read more here.

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