New research by the Financial Services Compensation Scheme (FSCS) shows that almost two-thirds of respondents feel reassured knowing that FSCS protects their money if their bank, building society or credit union fails.
On 30 January 2017, the FSCS protection limit increased from £75,000 to £85,000 following a consultation from the Prudential Regulation Authority.
The research by Populus, of a representative sample of 2,038 adults across the UK, found that 78% of people think a deposit protection scheme should exist. People do not think it is just well-off savers that benefit from the scheme, as 66% of respondents said that FSCS benefits everybody, regardless of how much money they have saved up.
83% of people feel reassured knowing FSCS exists to protect their money, a rise from 77% in March 2016.
In a year of changes in the UK, consumers’ trust in banks and building societies that are FSCS protected is the same, at an average of six out of 10. 76% of respondents are confident their money is safe in banks and building societies and credit unions, when they know about FSCS.
Mark Neale, FSCS chief executive, said: “FSCS continues to protect people if their bank, building society or credit union fails. Following the limit increase earlier this year, the scheme protects even more of peoples’ savings.
“Providing reassurance to people that their money is safe is our priority. I am pleased that more people feel reassured by the Scheme. It is also encouraging that trust in banks, building societies and credit unions protected by FSCS remains strong in what has been an year of changes in the UK. Consumers can check they are covered by visiting our protection checker at www.fscs.org.uk/protected.”