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Could the Government get its hands on your money?

09.04.2013

With recent news dominated by events in Cyprus, questions have once more been raised about how secure our money really is in the 'safe keeping' of the banks.

In the UK, the Financial Services Compensation Scheme (FSCS) protects savings which are held with the 900 or so banks, building societies and credit unions authorised by the Financial Conduct Authority (FCA), formerly the Financial Services Authority (FSA).

You can find out if your provider is authorised by asking them or by checking the database held on the FCA website.

However unlikely you think it is that a UK bank will get into trouble, it’s worth reminding yourself of the FSCS rules and making sure you manage your savings accordingly – because there are limits to the compensation you would receive if the worst happens.

Only the first £85,000 (or £170,000 for joint accounts) is protected in each institution, whether you have one account or more with them. So, make sure you hold no more than that with any one bank or building society ... and check that they are truly separate entities.

Richard Evans writing on personal finance for the Daily Telegraph, gives a round-up of the key points and highlights other ‘safe havens’ for your money: Read more on the Daily Telegraph website: “How to find the safest possible place for your money”.

If you have any specific questions about your own savings and investments, do just get in touch.

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Adrian Smith

Chartered Financial Planner
Chartered Wealth Manager
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