saving protection

df_97

i am sure i read somewhere that if a bank goes bust, only the first 30K is protected under uk regs. so you should try and avoid every having more than 30K with any one bank.


is that true? does any one have any links/proof?


nug

Stonk

It is called the Financial Services Compensation Scheme, and you would be protected for all of the first £2K, and 90% of the next £33K - making a total maximum protection of £31,700 when you have £35K deposited. This is on a per-institution basis.

In my opinion, therefore, given the number of similar accounts around and how easy it is to spread it about, it is wise not to have more than £35K with one institution. It is highly unlikely that a bank will go belly-up - but it most certainly can happen (you'll get a few ostriches responding here who will say it cannot). I personally don't want to stake my life's savings on it, particularly when it's a risk so easily avoided.

Having said that, I am currently breaking my own rule (temporarily!).

cheerfulcat

And here is a link