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EU proposes greater protection for savers
The European Commission has issued proposals which would enable savers to receive €100,000 (£84,000) of their deposits within seven days if their banks collapsed.
Currently the minimum compensation level is just half that amount, and savers have to wait three months to receive their money.
Additionally, savers’ rights can vary greatly from one country to another. While UK investors had 100 percent of their deposits refunded by the British government following the collapse of Iceland’s banks, there was no legal obligation for them to do so.
According to the European Commission, its new proposals would eliminate any concerns about differences in protection, enabling individuals to choose the most suitable savings product from any EU country.
