Savings account holders more aware due to recession, experts say

People with current accounts and savings accounts have become much more aware of the myriad financial risks they may be facing after the most recent economic downturn, financial experts now say.

Ed Bowsher, consumer finance head of lovemoney.com, stated that over the last three years account holders have become much more savvy regarding how much and what kinds of compensation would be available to them if the financial institutions administering their accounts were to go under.  He added that those with savings or current accounts – or even credit cards linked to their banks – are much more aware of the risk of the bank that they choose to do business with folding, or needing a bailout.

This has not dissuaded those of us who feel the need to save our heard-earned pay, however, added Bowsher, but he did add that consumers are much more reluctant than they were before the recession to deposit funds into their savings accounts that would raise them over the limit of protected funds in case of bank failure.

In related news, an announcement made earlier this week by the European Commission regarding new changes to the continent’s banking regulations; the new rules that would be put in place include regulations aimed at providing consumers with more benefits than they currently possess, including bank statements that are much clearer to read and understand, payouts that are faster and more streamlined than they are in their current form, and raising their minimum depositor reimbursement scheme from €20,000 to  €100,000 by December of this year.

The final measure was put in place in an effort to  prevent the kind of bank runs consumers caused by shifting their savings deposits to countries with coverage that is higher than their current country – something that was prevalent in 2008 during those first frenzied weeks of the economic downturn in Europe.

The statement, which was released by the European Commission on July 12, can be found on their website.

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