Financial protection: My money is safe…isn’t it?

June 13, 2014

Halifax, Saga, Birmingham Midshires, Bank of Scotland and AA Financial Services…all different institutions in the eyes of the consumer, but what do they have in common? They all share the same banking licence.

What does this mean for you?

Financial protection has been a burning issue since the credit crisis, and as such the UK’s level of savings compensation was raised to £85,000 (£170,000 for joint accounts) in January 2011 and no doubt you’ve been putting your money in several different institutions to maximise your cover.

However, it is important to remember you only receive this £85,000 coverage once under each bank or building society’s ‘compensation licence’.  For example, if you’ve got £85,000 with Halifax and £30,000 with Saga, you are only covered for £85,000 because they come under the same banner.

Following a series of mergers and takeovers the waters have been muddied regarding who owns who. The knock on effect for savers is attempting to navigate a complex system to ensure their hard earned savings are safe.

To help you navigate through the nebulous world of savings and protection, go to the following websites:

Banking and saving brands on the Financial Conduct Authority website

Building Society brands on the Financial Conduct Authority website

If you have any questions about this article call Paul Holiday at GreenSky Wealth on 01603 340800.

 

This article is for general use only and is not intended to address your particular requirements. It should not be relied upon in its entirety and shall not be deemed to be or constitute advice.

GreenSky Wealth Ltd is an appointed representative of Financial Limited which is authorised and regulated by the Financial Conduct Authority. FCA No: 516410