Wednesday, 14 October 2020

Ensure Your Savings Are Safe - FSCS Bank Protection Limit

If you have money held with a UK institution which is regulated by either the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA), you will have access to the Financial Services Compensation Scheme FSCS in the event that something goes wrong.

Under the FSCS, the first £85,000 of your savings (£170,000 if your money is held in a joint account) is protected if the bank or building society provider were to become insolvent or go bust.

The FSCS provides the same level of compensation for both a small company and individual savers.

We advise clients to save a percentage of their profits to cover their tax liabilities and for working capital requirements, however it can mean that a business can amass a significant sum in their deposit accounts. If the balance held is more than £85,000, it is important to consider spreading the money with different regulated banks.

You can read more information on the FSCS and check that the financial institution holding your money is protected here: https://www.fscs.org.uk/check-your-money-is-protected/

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