Uncertain times can mean you worry more about your money. Knowing your money is safe is important and can give you confidence, even when times are tough.
What is the Financial Services Compensation Scheme?
All banks and building societies authorised by the Prudential Regulation Authority are covered by the Financial Services Compensation Scheme (FSCS). It’s an independent service that protects your money should your financial service provider go bust. In the unlikely event this happens, you’ll be repaid by a Deposit Guarantee Scheme.
The FSCS guarantees your money up to £85,000 per person, per institution. Joint accounts have protection up to £170,000.
You can find out if your bank or building society is covered by checking the Financial Services Register.
What if you have multiple accounts at the same bank?
You’ll be covered up to the maximum of £85,000 for the sum of your accounts at the same bank, or building society.
If you have money in accounts at multiple banks or building societies, the FSCS has a protection checker you can use to see what’s covered.
How long will a claim against a failed bank, or building society, take?
If a bank, or building society fails, the FSCS aims to pay compensation within 7 days. Please note, more complex cases may take longer.
Making the most of your money
Saving can be a good way to prepare for the future. There aren’t many risks and with an instant-access account, you can withdraw money if you need it.
The only problem with saving is that interest rates are currently at an all-time low. And when your rate of interest is lower than the rate of inflation, your money will buy you less and less over time.
Another way to make the most of your money would be to consider investing. Investing does come with risk, which means you might not get back what you invest. And it can take a few days to access your money. But if you’re willing to set your money aside for 5 years or more, investing has the potential to make your money work harder than cash.
It’s important to consider your options. That’s why we’ve put together a set of guides to help you find what works for you.