How Do You Know if Your Savings are Safe?

What happens if the institution that looks after your savings goes bust? While memories of the 2008 banking crisis are receding with each passing year, there will always be a concern that money placed with any bank or other institution could be at risk.

So, is your nest egg really at risk in 2024?

After the 2008 banking crisis, the Government stepped in to minimise the risk to your savings when and if banks go bust.

Furthermore, from 2019, it became UK Law that to separate core retail banking services (including current accounts, mortgages and savings) from their investment and international banking activities – known as ring-fencing. This means that savers’ money deposited with banks cannot be used to fund other parts of their operation that might be involved with their more speculative activities.1

Many people have a rough idea that they will be compensated if the institution which holds their money goes bust, but it is not an all-encompassing ‘get out of jail free’ card. There are conditions for compensation that govern what kind of investment, where it is deposited and how much is covered.

The body which acts for those of us whose bank or institution has gone bust is the Financial Services Compensation Scheme (FSCS). Set up in 2001, it ensures that in the event of a catastrophic event, depositors can get their money back.2

If you hold money with a UK authorised bank, building society or credit union that fails, the FCFS will automatically compensate you:

  • up to £85,000 per eligible person, per bank, building society or credit union.
  • up to £170,000 for joint accounts.

To discover whether your investment is eligible for compensation if the worst happens, you can visit

The FSCS does not cover other investments such as stocks and shares, so be careful when you are investing to check that not only the institution you are using is a member of the FSCS but the investment is of the right type.

We enjoy helping our clients and making them happy  

Our qualified advisors will do all they can to provide help and support when you’re making these important mortgage decisions, possibly discussing alternative routes that you may not otherwise have considered.

We aim to ensure that every client has a happy experience with Mallory and with our consistent 5-star reviews on Trust Pilot we know we’re doing a great job.

Extremely efficient and proactive service! I can’t thank Jayne and Hollie enough for helping my family and I secure a mortgage that suited our particular needs. The process was smooth and transparent, extremely quick – even my estate agent commended their efficiency! All issues were responded to very quickly, and we’re now on our way to securing our new home. Highly recommended.

Wireko, May 2024

Helping you to secure the right mortgage for you

Take a proactive approach 

We can simplify the mortgage process for you and help secure you a great mortgage deal in the process. 

Contact the team on 01565 874 246

Think carefully before securing any other debts against your home. Your home/property may be repossessed if you do not keep up repayments on a mortgage. There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £250 to £1,000 and this will be discussed and agreed with you at the earliest opportunity. 


  1. Bank of England (2024) Ring-fencing. Available at: [Accessed 21 May 2024]
  2. Financial Services Compensation Scheme (2024). What we cover. Available at: [Accessed 21 May 2024]

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