The Savings Safety Net FSCS

The savings safety net

Did you know that all UK savers have a savings safety net for the first £85,000 of cash protected in the event of their bank or building society going bust ?  The limit is applied ‘per individual, per bank’. That means that if you have a joint account you both will get back £85,000; or up to £170,000 for both parties.

So if you’re bank or building society hits the buffers you are protected.

All UK-registered savings institutions have to sign up to the FSCS and agree that if one of them goes to the wall, the others step in and jointly repay depositors through the scheme. It’s the quintessential last line of defence for savers in banking crises.

Note the ‘per bank’ limit of £85k. This means that your savings are covered by the FSA rules.  The limits do not apply to money held with National Savings & Investments, where all of your money is 100 per cent guaranteed by the Government.

With the ‘per bank’ rule, it is best to spread your savings over as many banks / building societies as possible, if your lucky enough to have more that £85,000 in savings.  So make sure that you never deposit more than £85,000 at the same bank, building society or credit union.

Savings safety net

What products are Covered ?

The FSCS covers business conducted by firms authorised by the UK regulators, the FCA and PRA . European firms (authorised by their home state regulator) that operate in the UK may also be covered.The FSCS protects the following:

Foreign banks’ compensation limits

FSA and UK Government rules do not apply at some foreign banks operating in the UK who are signed up to their schemes in the country they are based., rather than the FSCS.

An example of this is the deposits at Irish banks operating in the UK such as Anglo-Irish Bank and Allied Irish Bank, have been 100 per cent covered since September 2008. The Post Office – where the deposits fall under Bank of Ireland – is now fully covered by the UK’s £85k safety net, though. This is because a UK subsidiary was set up to give Post Office savers peace of mind.

A popular bank with a foreign licence is ING Direct. The Dutch bank is covered back in the Netherlands up to €100,000. That would get converted into pounds sterling at the going exchange rate when claiming.

You can read more here on the FSCS site and make sure you are protected by the savings safety net.



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