Around 15,000 savers with the UK arm of stricken Cypriot bank Laiki will have their deposits protected under British rules and will escape the Cyprus banking levy, it was announced today.
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.