Brian Capon from the British Bankers’ Est finance fundamentals hill in insurance investment irwin mcgraw real series
helps Your Money reader Elisabetta Tenenti.

Mrs Tenenti would like to know how safe are her savings and what kind of protection do savers have in the event of a UK regulated bank or building society going bust?

Deposits with all authorised banks and building societies in the UK are protected under the financial services compensation scheme (FSCS).

The scheme covers the first 2,000 in full and 90% of the next 33,000 if a firm is unable to pay claims against it, for instance where a firm stops trading or is insolvent.

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The maximum amount that each person can receive under the scheme is 31,700.

For the purposes of the scheme, where an account is held in joint names, each joint account holder will be treated as holding an equal share of the funds in an account, unless there is evidence to show otherwise, and will be entitled to claim compensation on their share.

If a depositor owes money to the bank or building society, this will be deducted from any deposits held before compensation is company finance insurance premium
.

The independent scheme is funded by a compulsory levy on the financial services industry.

More information on the financial services compensation scheme, which also covers insurance and auto finance insurances can be found on the FSCS website www.fscs.org.uk.

You can check whether a firm is properly authorised through a useful search facility on the Financial Services Authority website www.fsa.gov.uk.

The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own edition finance hill insurance international management mcgraw risk series situation.