What would happen if a UK bank went bust?

sphwuss

Probably in the wrong forum for this so sorry in advance. I've searched the web and this forum and to no avail. I'd like to know what would happen to my savings if my bank went bust? I read somewhere that you are "insured" for want of a better word and up to £32K you receive 90% of your cash back (I've probably got the figures wrong) If this concept is correct, who underwrites the scheme? If anyone knows more I'd like to be better informed (so I can win my argument with a friend in the pub!!) Thanks for responding

ReportInvestor

The Financial Services Compensation scheme would pay you

100% of your first £2K
90% of your next £33K
0% of your next £1 million .

Optimist

The Financial Services Compensation Scheme established under the Financial Services and Market Act 2000. The scheme affords 100% protection to the first £2000 of a depositor's total deposits with the Bank and 90% of the next £33,000 amounting to a maximum payout of £31,700.

ReportInvestor

See here how it's funded

grumbler

All(?) banks and BSs are members of Financial Services Compensation Scheme

The maximum levels of compensation are:
Deposits: £31,700 per person.
100% of the first £2,000 and 90% of the next £33,000.
....

limits to the amounts of compensation