What are my rights if a bank collapses? |
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Source: Financial Mail Women's Forum, 25th July 2010 I understand that the government guarantees £50,000 in the event of a UK bank’s collapse. Does that this cover the total of all accounts held with the bank? What about accounts with foreign banks, such as Santander which is Spanish but offers facilities in the UK? Susan, Battersea, London The Financial Services Compensation Scheme (FSCS) is separated into distinct claim categories and this means that the limit of £50,000 applies separately for deposits (including savings and current accounts) and investments. These compensations limits are per person and per firm, so you could potentially benefit from a higher compensation limit if you have savings in different banks. All member states of the EEA are required to give a minimum level of 50,000EUR protection for depositors in the event of a bank failure. Santander has been authorised in the UK, and, as such, are full members of the FSCS. - Lesley Collins, Chief Executive, Independent Women |
