The Financial Services Compensation Scheme (FSCS) is the UK’s deposit guarantee scheme. All UK banks and building societies that are authorised by the Prudential Regulation Authority (PRA) or Financial Conduct Authority (FCA) are FSCS protected. This means that the FSCS protects 100% of the first £85,000 you have saved, per financial institution, not per account. And it isn’t limited to savings, you can also be FSCS protected for mortgages, insurance and investments if an authorised financial services firm goes bankrupt.
Over half of Brits now shop around when it comes to our finances. Just over a third (34%) are considering financial providers we hadn’t previously heard of. Savings rates change all the time, so it’s important to find the best option for you. Providers now offer online savings rates, sleek apps and easy access savings accounts, which means moving your money and shopping around for the best savings rates has never been easier.
Shopping around is a great tactic. Even though more people are now researching the market than before, its reported that savers miss out on billions each year in potential interest because they stick their savings where they have their current account. A Staying with the same provider as your current account can seem an easier option. Loyalty often plays a deciding factor for those who've been with the same financial service provider for a long time.
When it comes to finances, it’s better to think with your head and not your heart. But most importantly, just to really think. Be mindful and do your research. The Financial Times reported one is four savers are taking more risks with their money to combat inflation and the cost of living. And as interest rates climb it’s likely those shopping the market will see great savings rate enticing them.
Researching the market and moving your money to where it can earn a great return obviously seems like a great option to most. But decisions should be informed by more than a good interest rate, customers need to put their money in a trusted bank.Katie Johnson, managing director of savings at Hodge
As customers become more confident and potentially less risk adverse about their finances, it becomes all about making informed decisions. Understanding how savings and investments are protected so they can feel confident and secure that their money is safe.
Ensuring your financial services provider is FSCS protected is one way you can do this, but you can also check things such as customer reviews, Trustpilot ratings and looking on their website.
Find out more about what the FSCS covers at https://www.fscs.org.uk/what-we-cover/
You can read some more useful articles about easy ways to save in our news section.
This article is correct at time of publishing and for general information purposes only. We recommend you speak to a professional financial adviser for advice. You can find a financial adviser and further personal finance information at unbiased.co.uk.