moneysupermarket.com comments on the increased deposit compensation limits of the FSCS

Edited by the Insidemoneytalk editorial team Oct 3, 2007

Commenting on the FSA's decision to increase the deposit compensation limits of the Financial Services Compensation Scheme, Kevin Mountford, head of savings at moneysupermarket.com, said:

"The increase means the first £35,000 of each depositor's claim is entirely covered.

However, this is nowhere near the £100,000 originally touted.

Britain's pension crisis means the Chancellor should be encouraging and supporting people in their savings efforts.

This simply doesn't cut it.

"All savers should spread their cash between a variety of product types and providers to limit risk.

But they must ensure the providers are truly separate and not part of a single umbrella organisation.

For example, a saver with Halifax, Bank of Scotland, the AA and Birmingham Midshires (all part of HBOS) will only be protected to the tune of £35,000, and no more.".