Cascade Commentary

Savings protection limit to go back up to £85,000 from 30 January 2017 

Date: 27/01/2017

The Financial Services and Compensation Scheme (FSCS) protection limit will be raised to £85,000 per person/entity following the fall in the value of sterling since the Brexit vote. This was approved this month following a consultation by the Prudential Regulatory Authority (PRA). The new limits will become effective from 30 January 2017. 

The FSCS is the UK savings guarantee funded by the financial services industry. The FSCS derives from the European Union Deposit Guarantee Schemes Directive, which sets a consistent limit of €100,000 (or the equivalent) across Europe. This directive sets that the limit should be re-calculated at least once every five years while also allowing for “unforeseen events, such as currency fluctuations”. As the pound has fallen considerably against the euro since the Brexit vote, the PRA felt that a “structural shift in the exchange rate has occurred” and have resultantly rebalanced the compensation limits.  

It has been reported that 500,000 savers will benefit at the proposed new limit of £85,000, protecting around 98% of customers. Since 2001, the FSCS has come to the aid of more than 4.5 million people, paying out more than £26 billion in that time.

Personal, Corporate, Charity, Trusts, Pension, Designated Client Deposit, Power of Attorney and Court of Protection accounts are all eligible for protection under these new limits.  


Confidence in banks and building societies has remained low over the years since the 2007/8 market crisis. We have noticed an increased client awareness over their exposure to any one counterparty since our service was created in 2012. While clients continue to want to enhance their returns where possible, one of the main drivers over the last year for using the Cascade service has been the peace of mind that comes with professional cash management and daily monitoring.

Should you wish to produce a bespoke illustration for your clients to enhance their counterparty diversification to benefit from these increased FSCS limits, do let us know and we’ll be happy to assist. 

At Cascade we continue to deliver to clients the best rates available within their security and depositor protection requirements. Our online portal is now live for online access too. Should you wish for a demonstration, do let us know and we’ll be happy to deliver.  

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