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 if your financial service provider goes 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.
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 more than one bank or building society, the FSCS has a protection checker you can use to see what’s covered.
If a bank or building society fails, the FSCS aims to pay compensation within 7 days. Please note, more complex cases may take longer.
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 have been 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 growing your money to help you find what works for you.