YAHOO! FINACE – EXTRACT: As Cypriot savers see their savings used to bail out banks, we look at how safe your money is in a British bank.
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What about UK deposits? [Are they safe?] Sterling may be one of the world's weakest major currencies right now, but thankfully, we don't share it with anybody, including the Germans.
In the UK, we have our own deposit protection scheme, the Financial Services Compensation Scheme. This guarantees the first £85,000 of your money (£170,000 for couples), should your bank, building society or credit union collapse.
Anybody who remembers desperate savers lining up outside the branches of bankrupt Northern Rock in September 2007 won't want to have a penny above that threshold.
Savers with larger sums must reduce their risk by spreading it between different banks. But watch out, that £85,000 limit only applies per banking licence.
Some institutions share a single licence, because they are owned by the same parent company. For example, The AA, Birmingham Midshires, Halifax and Saga all come under the Bank of Scotland licence. If you had, say, £50,000 with the AA and £50,000 with Halifax, you would only get £85,000 of protection. Read all | [Source: Yahoo! Finance] | Wednesday, March 27, 2013
