Emma’s savings pot: over the deposit protection limit

Disclaimer: This story is fictional and created for illustrative purposes only. It does not describe real people or events.

Rainy day fund. Nest egg. Safety net. Whatever you call it, I've always been a saver. 

Over my career, I had managed to build up £150,000 in my local credit union, but I had never really thought too much about how my money was protected. I’d always just assumed that my money was safe. 

When I looked into it, I discovered that eligible deposits are FSCS protected from your first pound up to £120,000 per person, per banking licence with UK-authorised banks, building societies and credit unions. 

That was great news, of course - but for me that meant if my credit union went out of business, while £120,000 of my savings would be protected, the remaining £30,000 would be above the FSCS compensation limit and I would not get that portion of my money back. 

Rather than leave part of my savings unprotected, I moved £30,000 to a savings account with a UK-authorised provider in a separate banking group. FSCS protection applies per banking licence, and so that way, my full £150,000 is now protected, with £120,000 covered per account. 

Check how much of your money in your bank, building society or credit union is FSCS Protected.