With the Eurozone crisis rearing it's head again I thought it would be a good idea to revisit a subject I have dealt with before regarding your savings
If you have savings in UK licensed financial institutions then your money will be safe, up to a point. Under the Financial Services Compensation Scheme (FSCS) you will be compensated up to a maximum of £85,000 if your bank were to collapse, and this would be doubled up to £170,000 if you held a joint account. However, if you have savings above these amounts then may you need to start thinking about spreading your savings amongst a number of banks, as each account will then be protected up to the £85,000 limit.
One thing to bear in mind when opening new bank accounts is that although a banks may have a different name it might be part of a bigger group. In which case only a total £85,000 will be protected across the whole group.
The key to unravelling this dilema is to understand who owns the 'Banking Licence' for the main banks in the UK so that you can then open accounts with banks that fall under different licences.
I have covered the main UK banks below to help you keep your hard earned savings safe.
| BANK | BANKING LICENCE |
| Bank of Scotland | Bank of Scotland plc |
| Halifax | Bank of Scotland plc |
| Birmingham Midshires | Bank of Scotland plc |
| Intelligent Finance | Bank of Scotland plc |
| Saga | Bank of Scotland plc |
| Barclays Bank | Barclays Bank plc |
| First Direct | HSBC Bank plc |
| HSBC | HSBC Bank plc |
| Lloyds TSB | Llloyds TSB Bank plc |
| Cheltenham & Gloucester | Llloyds TSB Bank plc |
| Cheshire BS | Nationwide BS |
| Derbyshire BS | Nationwide BS |
| Dunfermline BS | Nationwide BS |
| Nationwide BS | Nationwide BS |
| NatWest | National Westminster Bank plc |
| Royal Bank of Scotland | Royal Bank of Scotland |
| Alliance & Leicester | Santander UK plc |
| Cahoot | Santander UK plc |
| Santander | Santander UK plc |
| Britannia | The Co-operative Bank plc |
| Smile | The Co-operative Bank plc |
| The Co-operative Bank | The Co-operative Bank plc |
Note - If you have money invested in foreign banks operating in the UK then they will either be part of the FSCS or what is known as the Passport Scheme. This basically mean that banks can operate under the compensation scheme of their home country and since 2010 all such schemes must have a limit of at least €100,000. If you have any doubts ask the bank in question for details of the compensation scheme they operate.
