Close Menu
Saving Superstar
    What's Hot

    How to start investing with little money

    July 2, 2025

    What is a soft credit check?

    June 27, 2025

    Talking to your kids about debt

    June 25, 2025

    How to tell if an AI investment tip is trustworthy

    June 23, 2025

    What is the avalanche method and how does it work?

    June 20, 2025

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    How to start investing with little money

    July 2, 2025

    What is a soft credit check?

    June 27, 2025

    Talking to your kids about debt

    June 25, 2025
    Facebook X (Twitter) Instagram
    Saving SuperstarSaving Superstar
    Facebook X (Twitter)
    • Home
    • Budgeting

      An honest guide to supermarket loyalty cards in the UK

      April 24, 2025

      How to stretch your grocery budget when prices keep climbing

      April 24, 2025

      Frugal living hacks: 10 Ways to save without sacrificing comfort

      April 16, 2025

      The biggest budgeting mistakes that keep you in debt

      March 26, 2025

      How to cut back on expenses without sacrificing your quality of life

      March 25, 2024
    • General finance

      20 Tricks shops use to make you spend more

      June 6, 2025

      What is lifestyle creep and how to avoid it

      May 28, 2025

      How to bleed your radiators: A step-by-step guide

      May 7, 2025

      Pay per mile road tax: What, where and when?

      September 13, 2024

      How to lower the cost of owning a dog

      April 1, 2024
    • Housing
    • Credit & debt
    • Bills and utilities
    • Saving and Investments

      How to start investing with little money

      July 2, 2025

      How to tell if an AI investment tip is trustworthy

      June 23, 2025

      What is the avalanche method and how does it work?

      June 20, 2025

      Your cash ISA is full, what next?

      June 6, 2025

      7 Sensible steps to save for retirement

      May 21, 2025
    • Seasonal savings

      10 Ways to save money on back-to-school shopping

      August 5, 2024

      10 Amazon Prime Day tips – Get the most out of Prime Day!

      July 1, 2024

      Start the new year with a new financial outlook!

      December 26, 2023

      How to get the best out of post-holiday sales

      December 21, 2023

      How to save for Christmas throughout the year

      December 18, 2023
    • Contact
    Saving Superstar
    Home » Is your money safe in the bank?
    Saving and Investments

    Is your money safe in the bank?

    JamieBy JamieJune 26, 2023Updated:July 26, 20233 Mins Read
    Is your money safe in the bank
    Share
    Email Facebook Twitter LinkedIn

    Banks haven’t had an easy time of it over the past decade or so. There have been some high profile failures and some expensive bailouts, so are they safe? Is your money safe if you use a bank?

    Let’s set the scene right away.

    Yes, your money is safe in the bank if it’s a UK bank.

    The UK has the Financial Services Compensation Scheme, FSCS, that guarantees any money you have in savings.

    To a point.

    Financial Services Compensation Scheme

    The Financial Services Compensation Scheme is funded by the banking industry and is like insurance for your savings.

    It covers many aspects of personal finance, from mortgages to investments but we know it best as the thing that protects our savings.

    The FSCS protects your money held in UK banks, credit unions and building societies. It covers you for up to £85,000 per person per institution and is automatic, so you don’t have to do anything.

    That per institution part is important.

    The idea is to protect consumers from bank failures or situations like we had in 2008 when banks failed so spectacularly.

    Total cover is £85,000 for individuals and £170,000 for couples per institution.

    There’s also special protection for temporary high balances of up to £1 million.

    For example if you sell your house and bank the money while looking for a new one, or inherited money while you decide how to invest it.

    Protection per institution

    Protection per institution is important to understand as it can get a little complicated.

    Protection per institution means your £85,000 is safe in one bank or in several banks, as long as those banks are not part of the same institution.

    This is important to know as some banks own other banks and will all count as one institution.

    This helpful guide from Which? shows you what banks own what brands.

    As you can see, HSBC own First Direct, Santander own Cahoot, Aviva is owned by Bank of Scotland and so on.

    The crux of all this is that you’re covered for a total of £85,000 or £170,000 for the bank and any bank it owns.

    So, if you have £85,000 in an HSBC savings account and £85,000 in a First Direct account, only one of those will be protected.

    FSCS protection

    Finally, not all financial institutions enjoy FSCS protection. Most of the mainstream banks do, but newer online-only or app-based banks may not.

    Neither do many investment apps and other digital banks or currency apps.

    If you use any of these, look for FSCS notifications or ask the bank to make sure they are part of the scheme.

    If not, your money may be at risk.

    The FSCS has yet to be tested in the real world but should work as advertised. Hopefully, we’ll never find out but it’s good to know it’s there if we need it.

    bank saving money savings
    Jamie
    • Website
    • Facebook

    I'm a writer and editor at Coastal Content and Brainstorm Force with a background in IT and networks. I'm passionate about helping people take more control of their lives, especially finance.I'm a copywriter by training, which is why my posts are all no-nonsense and to the point, with little fluff or filler. We're all busy people and are just looking for the information we need quickly. That's my style and the style of Saving Superstar.

    Related Posts

    How to start investing with little money

    July 2, 2025

    How to tell if an AI investment tip is trustworthy

    June 23, 2025

    What is the avalanche method and how does it work?

    June 20, 2025

    20 Tricks shops use to make you spend more

    June 6, 2025

    Your cash ISA is full, what next?

    June 6, 2025

    7 Sensible steps to save for retirement

    May 21, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Don't Miss
    Saving and Investments

    How to start investing with little money

    July 2, 2025

    Investing often feels like something reserved for people with large salaries or financial advisers on…

    What is a soft credit check?

    June 27, 2025

    Talking to your kids about debt

    June 25, 2025

    How to tell if an AI investment tip is trustworthy

    June 23, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • LinkedIn
    Links
    • Write for Saving Superstar
    • Privacy Policy
    • Disclaimer and affiliate information
    Categories
    • Bills and utilities
    • Budgeting
    • Credit and debt
    • General finance
    • Mortgages and housing
    • Saving and Investments
    • Seasonal savings
    Latest News
    • How to start investing with little money
    • What is a soft credit check?
    • Talking to your kids about debt
    • How to tell if an AI investment tip is trustworthy

    Type above and press Enter to search. Press Esc to cancel.