I never really think too much about money, I have some in the bank and often a few pounds in my purse, I try not to spend too much on things that I don’t need and I try and save for my holidays and to take the kids on special adventures throughout the year. I’ve certainly never thought about what would happen to my money if something happened to my bank or building society so I was reassured to find out about the Financial Services Compensation Scheme (FSCS).
The FSCS is the UK’s statutory fund of last resort for customers of financial services firms. This means that FSCS can pay compensation to consumers if a financial services firm is unable, or likely to be unable, to pay claims against it. The FSCS is an independent body, set up under the Financial Services & Markets Act 2000 (FSMA). They do not charge individual consumers for using their service. It is really reassuring that FSCS provides this service to people, it protects up to £85,000 of your money (savings), should anything happen to your bank, building society or credit union.
The FSCS deals with claims against authorised firms that are unable, or likely to be unable, to pay claims against them. This will generally be because a firm has stopped trading and has insufficient assets to meet claims, or is in insolvency.
About the FSCS…
- If anything happens to your bank, building society or credit union, the FSCS automatically refunds savings up to £85,000 within 7 days. You won’t have to do anything.
- FSCS has paid out more than £26 billion in compensation.
- FSCS has already helped more than 4.5 million people since it was established in 2001.
- 98% of the UK population have less than £85,000 in savings and are covered by the £85,000 protection limit.
For more information please check out the FSCS website.
* In collaboration with FSCS