With your capital tucked away in savings accounts, investments and mortgages, you’d assume that there is some kind of protection in place. But exactly how safe are your savings in the event of, for example, an authorised financial services firm going bust? That’s exactly what happened during the 2008 banking crisis, and UK taxpayers had to shell out £4.5bn to the people who had saved their money with Icelandic bank, Icesave.
You’ll be happy to hear that there is a safeguard in place for such an occurrence that can make such drastic means unnecessary, depending on which banks are affected. The Financial Services Compensation Scheme (FSCS) was established to provide you with a level of protection. Up to £85,000 worth of cash savings covered per individual, per financial institution, to be exact. Continue reading