Government will cover London Scottish Bank savers

The Treasury has decided to cover consumers’ deposits with London Scottish Bank for those with over £50,000 in savings.

Alistair Darling, chancellor of the exchequer, has pledged to ensure that all depositors with London Scottish Bank who are eligible to claim under the Financial Services Compensation Scheme will get their money back.

Following London Scottish Bank going into administration, savers with up to £50,000 in the bank will be covered by the FSCS. The government will then cover those with deposits in excess of the £50,000 FSCS limit.

The FSCS is now working with Ernst and Young, the administrators of London Scottish Bank, to contact affected consumers.