Banking

House of Lords written question – answered on 13th February 2012.

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Photo of Lord Myners Lord Myners Labour

To ask Her Majesty's Government whether they will examine the case for extending depositor protection to unlimited balances temporarily placed with a bank as a result of unusual events, such as a house sale or receipt of an inheritance.

Photo of Lord Sassoon Lord Sassoon The Commercial Secretary to the Treasury

The Financial Services Compensation Scheme provides protection for up to £85,000 per depositor, per authorised institution.

Coverage provided is subject to the EU deposit guarantee scheme directive. A recast of the directive is currently being negotiated.

Once the final directive is agreed, the Financial Services Authority will review the level and scope of deposit coverage provided and prepare any changes that may be needed to ensure that the Financial Services Compensation Scheme is compliant.

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