Simon Read: 'Savers, take action - only £75,000 of your nest-egg will be protected'

The Bank of England confirmed that the £85,000 protected under the Financial Services Compensation Scheme will fall to £75,000 in January

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The Independent Online

If you've been careful enough to spread your nest-egg around several institutions to ensure your savings are protected in the event of a bank collapse, you'll soon need to take some action.

The Bank of England confirmed today that the £85,000 protected under the Financial Services Compensation Scheme will fall to £75,000 in January. But it's not a step back, simply a by-product of sterling's recent relative strength.

The guarantee was set in 2010 in line with the EU's €100,000 guarantee. The Government reviews it every five years, and now €100,000 is closer to £75,000, hence the fall. And hence the need to check your savings' protection before the end of the year.

Anna Bowes of said the move was a blow to savers. "If they want to remain fully protected, it will be an administrative headache for them – not only with regard to withdrawing any excess funds, but also looking for a new home for the money. In some cases, the alternative currently available may pay a lower rate of interest, so they could be out of pocket too."

Mobile phone companies enter the hall of shame

The number of companies fined for customer service failings appears to be climbing. We've seen banks reprimanded as well as energy companies. Now mobile phone firms have been put in the spotlight.

Yesterday's £1m fine for EE for "serious failings" in handling complaints will come as little surprise to the company's millions of customers used to poor service and misleading communications. For three years it failed to inform disgruntled customers of their rights to complain. Now it must start to try to regain their trust.

Twitter: @simonnread

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