ING Direct savers in the UK will be protected by the British Government, instead of the Dutch compensation scheme, once a proposed buy-out by Barclays goes ahead.
A new savings account provider offering high interest is NOT protected by any compensation scheme, which means if it went bust savers would be likely to lose their cash.
Record low interest rates and multi-billion-pound emergency support measures from the Bank of England are costing savers nearly £18 billion a year, research showed today.
Banks will be made to display clearer information online and in branches on how much compensation savers could claim if their provider went bust. However, the new rules stop short of forcing banks to include the information on statements.
The eurozone crisis threatens to destabilise some of the Continents' top banks, so what does that mean for savers with cash in Spanish giant Santander, which has become one of the UK's largest institutions?
British banks should ring-fence their retail businesses from investment banking operations to protect savers' deposits under proposals outlined by the Independent Commission on Banking (ICB) today.
11 April 2011
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