Finding the right bank account How safe is my bank?
You need to be sure that your money will be safe if your bank goes bust
If you’re worried about the safety of your bank and the money you have in it, the first thing to do is to check whether it has Financial Services Authority (FSA) regulation. You can do this by checking the FSA register.
If it is authorised, then you have Financial Services Compensation Scheme (FSCS) coverage up to £85,000. It’s important to remember that this £85,000 coverage is per person, not per account. So if you have more than this amount, you should spread it around several financial institutions.
Who owns your bank
You should also find out who owns your bank, as in recent years some banks and building societies have merged with their larger competitors.
The past few years have seen Lloyds TSB take over HBOS, Santander buy Abbey, Bradford & Bingley and Alliance & Leicester and Co-operative Bank merge with Britannia building society.
This affects the FSCS coverage that customers would receive in the event of a crisis. Some banks, such as Lloyds and HBOS, have retained their own banking licences post-merge, so you have compensation coverage from both banks (ie up to £170,000). However, others have given up their separate banking licences, meaning that you may now only have one 'dose' of coverage.
To find out who owns your bank and what FSCS coverage you have in place, see our guide to who owns who in the savings market.
Joint accounts
If you and your partner have saved a significant amount of money and you don’t like the idea of spreading it around multiple banks, consider opening up a joint savings account.
The FSCS covers £85,000 of savings per individual, per financial institution – so by placing your savings in a joint savings account along with your partner, you're effectively doubling your coverage. This means coverage of £170,000 in total.
- Had problems with your bank? Take a look at our guide to complaining about financial services
- Take a look at our Which? Recommended Provider bank accounts
- Call the Which? Money Helpline for further guidance on the banking best options for you
