Essential Recipes: How safe is your bank account?

Your Co.mmerce

This episode of the Your Recipe for Financial Success podcast was published on 26th August 2021. You can listen again by heading to our Episodes page, or on your favourite podcast player.

In this episode, Becky and Emma share all you need to know about keeping your money in a bank account; what the risks are and whether your money is protected.

Episode Highlights

  • As a rule your bank is a safe place to leave your money but check that they are regulated by the FCA and PRA
  • Bear in mind inflation risk. This is the risk of your money being worth less over time because of the effect of inflation, especially with interest rates being as low as they are at the minute
  • Be aware of default risk. This is the risk of your bank actually going bust! The FSCS is in place to step in to compensate savers should this happen. You should make sure your bank is covered by the FSCS scheme
  • The FSCS compensation covers up to £85,000 per person, per banking group.