Banks should warn exposed savers

It's not often that the majority of MPs say banks should be forced to raise interest rates
But in this case they mean raising interest in a protection scheme for all savers who use UK financial institutions.
Such is the widespread ignorance of the scheme, that banks and building societies are being urged to tell investors when they exceed its guaranteed limits.
All this is according to the Financial Services Compensation Scheme (FSCS), the UK's savings safety net.
This last-resort compensation fund protects a maximum £85,000 for single account savers and £170,000 for joint accounts if a bank goes bust.
This is funded by an industry levy.
As many as 81 per cent of MPs surveyed in an FSCS poll say financial institutions should make it clear to savers when their deposits exceed the £85,000 compensation limit that anything above this amount is not protected.
More than three-quarters (76 per cent) of customers polled agree, said the FSCS.
The body itself wants to see banks and building societies doing more to raise awareness about compensation limits in their everyday dealings with customers, including advertising.
The FSCS previously acknowledged that its own promotional efforts have not sufficiently raised the public grasp of the scheme.
Its last study in December found that just over one in 10 customers (12 per cent) know precisely how much of their money would be safeguarded if their bank went under.
Such lack of awareness has continued, despite new awareness rules coming into force last August.
They ordered that that banks, building societies and credit unions must prominently display stickers or posters publicising compensation rates.
The savings safety net's latest study also discovered that more than three in four MPs think that banks and building societies should include details about the FSCS in their advertising.
Four-fifths say that raising awareness of the body would enhance consumer confidence and financial stability.
Researchers surveyed more than 150 MPs and 1,000 consumers.
The FSCS has assisted more than 4.5 million people and paid out more than £26 billion in the past 12 years.
The scheme guarantees savings held with UK banks and subsidiaries of foreign banks which operate in the UK.
It does not, however, cover deposits stored with UK branches of European banks, which are covered by the relevant compensation scheme in the country where the bank has its head office.
The recent Cyprus economic collapse highlighted the subject of savings protection.
It was announced last week that about 15,000 savers in the UK branch of stricken Cypriot bank Laiki would have their savings switched to Bank of Cyprus UK.
This bank works as a fully-fledged independent bank in this country.
This means that its deposits are covered by the FSCS.
Mark Neale, FSCS chief executive, said it is too late for customers to learn about FSCS when a run on a bank begins.
He thinks banking companies can and should do more.
Mr Neale said that savings compensation awareness is higher in the United States as financial institutions customarily include such details in their advertising.