Savings platforms and FSCS
I am looking at savings platforms. HL caught my eyes, as they seem to be swifter than raisin when moving money from the holding account to a particular savings account.
I have read a which report which I dont quite understand re fscs coverage.
Are they saying the money held in the holding account as such (before its allocated) may be at risk if the platform goes bust, or do they mean with the individual accounts with the different providers (which is rather alarming if so!)
I have put an excerpt of the text below.
Many Thanks for reading this, and even more if you happen to know and can reply.
Usually, when you deposit money into a savings account, your funds of up to £85,000 will be covered by the Financial Services Compensation Scheme in case the bank goes bust. But when you save via a savings platform, things can get a little more tricky.
If deposits are held in your name, or on trust, where you remain absolutely entitled to the funds, you could still claim up to £85,000 in compensation.
However, if the savings platform itself fails - as opposed to a bank or building society - the FSCS says they generally won't be able to compensate, as the service provided by the savings platform is not a regulated activity.
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