Saturday 16th December 2017
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New savings tool launched to allow consumers to check whether their money is protected

Summary
 
 

New savings tool launched to allow consumers to check whether their money is protected

  • New checker launched by the Financial Services Compensation Scheme (FSCS) today
  • Online tool will allow people to check instantly whether the institutions they have money with are protected by the FSCS
  • Research shows that only a half (54%) of consumers are aware of the FSCS protection scheme

The Financial Services Compensation Scheme (FSCS) has produced a new online tool for consumers who want to know whether their savings are protected. 

The simple deposit protection checker has been created by FSCS with the support of the Prudential Regulation Authority (PRA) and will allows people to enter the names of their authorised banks, building societies and credit unions they have money with to check if it is protected by the FSCS.

People with money in an institution which is either not authorised by the PRA, or with more than £85,000 in a savings or deposit account, are informed how much of their money is at risk.

Before the creation of the protection checker, to know whether their money was safe consumers had to ask their provider, call FSCS or check a long-list of authorised firms on the Financial Services Register online. 

The move comes as new GfK NOP research reveals just over half (54%) of consumers are aware that compensation is available for those who lose money if an authorised financial services firm fails.

The protection checker has been created as part of phase two of FSCS’ consumer awareness programme. Launched in January 2013, this runs through to 31 March 2014 and seeks to reassure people about the safety of their savings.

FSCS, which is independent and free to consumers, has helped more than 4.5m people and paid out more than £26bn since 2001. The financial services industry funds the scheme through a compulsory levy. It covers deposits, insurance, investments and mortgage broking.

Mark Neale, CEO of the FSCS joins us now for more....