Changes to Financial Services Compensation Scheme (FSCS) depositor protection limit


The Prudential Regulation Authority (PRA) has issued recent guidelines with reference to the change in the deposit protection limit, in respect of depositors with aggregate eligible deposits above £ 75,000.

Your eligible deposits with Bank of Baroda are protected up to a total of £ 75,000* by the Financial Services Compensation Scheme, the UK's deposit protection scheme. Any deposits you hold above the limit are unlikely to be covered..

From 1 January 2016 deposit limit for bank accounts under FSCS coverage from the existing £ 85,000 to £ 75,000. (For individuals: the level of cover is reducing from £ 85,000 to £ 75,000 per bank. For Joint account holders: each account holder will have a level of cover up to £ 75,000).

Affected person means a "relevant person", within the meaning given in regulation 7A (4) of the deposit guarantee scheme regulations, whose aggregate eligible deposits:

(1) are greater than the coverage level (unless the firm is required to make payments to or to the order of that person before 1 January 2016 that are likely to result in that person ceasing to have aggregate eligible deposits over the coverage level on that date);or

(2)are reasonably likely, on: (a) 1 January 2016;or (b) the maturity of an account or product held by that person, to be greater than the coverage level, taking account of the accrual of interest or additional credits required by that person's contract with the firm;.

In view of the regularoty guidelines, Bank of Baroda will be allowing withdrawals to the 'affected funds' as under:

1.Allow the depositor to make one withdrawal without any charge, penalty or loss of interest upto a maximum of £ 10,000.(Principal amount)

2.Depositors should submit their written request to the branches for withdrawals before 31st December 2015.

3.All Payments will be made by 31st January 2016.

4.The Bank will not levy charges on Bank transfer up to £ 10,000 plus corresponding interest on £ 10,000 in case of such withdrawals.

5.The interest on withdrawn amount shall be paid at the contracted rate up to the date of payment without any penalty or change.

6.The remaining amount shall be continued with the same characterstics and terms (including interest rate, original start date and original maturity date) as that of original deposit.

7.In case of deposit products where partial withdrawal is not feasible, then for operational reasons, the Bank may close a product in its entirety to facilitate a partial withdrawal (without interest loss up to a maximum of £ 10,000)and renew the balance amount with same terms of interest rate, start date and maturity date. Such action shall not restart the term of the product.

8.if the depositor requests to withdraw the entire deposit, an early closure charge, i.e, penalty clause shall be invoked as per the existing bank guidelines on the remainder of the deposit and at the rate of interest for which the deposit has run less the penalty interest, excluding £ 10,000.

For details contact your nearest branch/

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