Any savers who lose money in the event of a bank or building society collapsing will receive compensation more quickly in future.
The FSA is making changes to the Financial Services Compensation Scheme so that by the beginning of 2010, compensation up to £50,000 will be delivered within seven days (currently compensation is to be paid within 20 days). Additional changes mean that savers, who hold money with banks that they also have a personal loan with, will receive their compensation in full. Currently, they receive the compensation offset against the balance they owe. Compensation rules are also to be changed to start working out interest to be paid on fixed rate accounts from the day an institution collapses.