As of January 1, savers with large amounts of cash savings could face losing £100s in interest because of new rules which require splitting cash pots to ensure it is adequately protected.
A key depositor protection deadline passed along with the 2015 year end, which now means the maximum amount of savings guaranteed in the event of a bank going bust falls from £85,000 to £75,000 per person.
Banks and building societies allowed savers a short period in which to reduce account balances to the new, lower threshold without paying penalties, however, that deadline passed at midnight on December 31.
According to some reports; “As well as losing up to £300 in interest, savers could be forced to move money into new accounts where returns are lower… Depending on the type of account and length of term you could lose between three and 12 months’ interest if you now move your cash.”
If you would like to seek clarity on your situation, or discuss the right saving and investment strategy for 2016 and beyond, why not make an appointment with our Teddington office at a time convenient to you.
Please call us on 0800 731 7614 or by e-mail at email@example.com and we’d be delighted to help.