By LEE BOYCE | Banks will be required to display notices in branch and on websites that tell customers how much of their savings are protected if the bank goes bust, the Financial Services Authority (FSA) said today. The plans - outlined in December - will also apply to building societies and credit unions. They will see stickers and posters displayed prominently in branches to draw attention to savings protection limits. UK savers' deposits are protected up to £85,000 under the savings safety net - the Financial Services Compensation Scheme (FSCS). Foreign banks with branches in the UK which are not covered by the scheme will need to make this clear while stating which national scheme is providing protection. The FSCS, which protects consumers when financial institutions go bust, said the plans are a ‘step in the right direction,’ but is urging firms to go beyond the FSA’s minimum requirements. Cash lock: Each bank will need to spell out to customers more clearly in branch and online how much of their money is protected if it went bust Mark Neale, chief executive of FSCS, said: ‘The banking crisis shows how important it is for consumers to have clear information about FSCS protection. ‘We never again want to witness the run on a bank because people do not know their money is protected. Since then, the industry has improved the quality of information it gives to consumers about FSCS. ‘However, it needs to do much more to provide clear, accurate information about the protection we provide. This is essential to building consumer confidence, and is not limited to deposits. It is something that is normal in other parts of the world.’ The FSCS protects consumers if banks, building societies or credit unions go under [read more]. The safety net has paid out more than £26billion in compensation to over 4.5million people since 2001. The scheme covers savings up to £85,000 for single accounts and £170,000 for joint accounts. The compensation limit applies to each banking licence, and not each individual brand, meaning that consumers who want to remain within the limit have to know which banking groups own individual brands. For example, Santander owns the Cahoot banking brand, but has not applied for a separate FSCS licence. It means individuals with savings at both Santander and Cahoot would have £85,000 of their cash protected across both accounts, instead of £85,000 protected for each. Read This is Money’s guide to which banking groups come under what licence. While the scheme covers deposits held with UK banks and subsidiaries of foreign banks which operate in the UK, it does not cover money held with UK branches of European banks. These are covered by the relevant compensation scheme in the country where the bank has its head office. For instance, savers with money in ING Direct are covered up to €100,000 by Holland's compensation scheme, not the UK’s scheme, while Bank of Cyprus UK savers are covered by the Cypriot savings net. The FSCS recently launched a £4million publicity campaign in a bid to raise the scheme's profile, but later acknowledged that awareness had not been raised to the levels hoped. The FSA will publish its new minimum requirements for deposit takers to display information about the scheme today.'Keep calm, your cash is safe':
Banks ordered to display details of savings protection to head off bank runs
Read more: http://www.dailymail.co.uk/money/saving/article-2150765/Branches-ordered-display-details-savings-protection-head-bank-runs.html#ixzz1wSwuoKwG
SAVINGS COMPENSATION & PROTECTION:
A comprehensive list of bank ownership and licences
The way you spread out your savings is crucial in terms of protection and compensation, but it is also an extremely complex system that is difficult to navigate. Our banking correspondent Lee Boyce keeps you updated...
The UK's level of savings compensation was raised to £85,000 in January 2011 by the Financial Services Compensation Scheme (FSCS).
The limit is doubled for joint accounts to £170,000.
However, you only receive this £85,000 coverage once under each bank or building society's 'compensation licence'. Each bank usually has its own licence.
Therefore it is best to spread your savings over as many savings institutions as possible - never holding more than £85,000 in each. Yet a series of mergers, takeovers, joint ventures and subsidiaries has created an impenetrable web for savers to negotiate.
Below, we reveal who owns who to make sure you don't unwittingly bank savings twice with the same institution.
However, the issue of savings compensation is a complicated one: there are a number of banks that are owned by the same banking group but which are separately licenced under the FSA. This means you can have deposits with, for example, NatWest and with its owner RBS and be covered under the FSCS for both accounts separately, meaning total coverage of £170,000.
New EU rules have increased the compensation limit to - €100,000 across Europe. A fixed exchange rate is agreed every five years, so British savers know precisely how much of their money is protected in pounds sterling. Between 2011 and 2016 it will be £85,000.
The ruling ensures that every single penny saved by 95 per cent of UK depositors is covered, the FSCS says.
ESSENTIAL GUIDE: How to save safely with banks and building societies
UPDATES:
- Savers at merged building societies now come under ONE licence. Until December 2010, they were separately covered. A single £85k limit applies to Nationwide, Derbyshire, and Cheshire building societies; Yorkshire and Chelsea; Skipton, Scarborough and Chesham; Co-op Bank and the old Britannia Building Society; Coventry and Stroud & Swindon.
- Bank of Ireland has set up a UK subsidiary called 'Bank of Ireland UK'. This means all deposits held in the UK - including with the Post Office - are now protected under the Financial Services Compensation (£85,000 guarantee).
- There is now just one compensation licence for Santander and subsidiaries: Abbey, Alliance & Leicester, Bradford & Bingley.
- Lloyds TSB took over Halifax and Bank of Scotland (HBOS) to form Lloyds Banking Group. The two groups will keep separate compensation licences despite their merger.
For more updates sign up to our newsflash or newsletter.
If you need to open a new account our savings tables have the web's best advice on rates and our savings tool allows you to do your own research.
Below is the web's most comprehensive guide to savings compensation.
The name of the bank is listed next to its licence. If the ownership of the bank is different to the licence-holder, this is noted in brackets. But the licence-holder is the most important information.
Find your bank or building society:
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
| A | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| AA Financial Services | Bank of Scotland plc | UK |
|
| Aldermore | Aldermore Bank plc | UK | |
| Alliance & Leicester | Santander UK plc | UK |
|
| Alliance & Leicester international | Alliance & Leicester international | Isle of Man | |
| Allied Irish Bank (GB) | AIB Group (UK) plc | UK |
|
| AIB International Savings Ltd | AIB International Savings Ltd | Isle of Man | |
| Aviva | Bank of Scotland plc | UK |
|
| B | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Bank of China (UK) | Bank of China (UK) Limited | UK | |
| Bank of Cyprus UK | Bank of Cyprus Public Company Limited | EEA - Cyprus | |
| Bank of Ireland (IOM) Ltd | Bank of Ireland (IOM) Ltd | Isle of Man | |
| Bank of London and The Middle East | Bank of London and the Middle East plc | UK | |
| Bank of Ireland UK | Bank of Ireland (UK) plc | UK |
|
| Bank of Scotland | Bank of Scotland plc | UK |
|
| Barclays Bank | Barclays Bank plc | UK |
|
| Barclays Wealth | Licensed in Gibraltar, Guernsey, Isle of Man and Jersey | Gibraltar | |
| Barnsley Building Society | Yorkshire Building Society | UK |
|
| Bath Building Society | Bath Building Society | UK | |
| Beverley Building Society | Beverley Building Society | UK | |
| Birmingham Midshires | Bank of Scotland plc | UK |
|
BM Savings | Bank of Scotland plc | UK |
|
| Britannia | The Co-operative Bank plc | UK |
|
| Britannia International | Britannia International | Isle of Man | |
| Brown Shipley | Brown Shipley & Co Limited | UK | |
| Buckinghamshire Building Society | Buckinghamshire Building Society | UK | |
| Butterfield Private Bank | Butterfield Bank (UK) Ltd | UK | |
| C | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Cahoot | Santander UK plc | UK |
|
| Cambridge Building Society | Cambridge Building Society | UK | |
| Cater Allen Private Bank | Cater Allen Ltd | UK | |
| Century Building Society | Century Building Society | UK | |
| Charity Bank | The Charity Bank Ltd | UK | |
| Chelsea Building Society | Yorkshire Building Society | UK |
|
| Cheltenham & Gloucester | Lloyds TSB Bank plc | UK |
|
| Cheshire Building Society | Nationwide Building Society | UK |
|
| C Hoare & Co | C Hoare & Co | UK | |
| Chorley & District Building Society | Chorley & District Building Society | UK | |
| Citibank | Citibank International plc | UK | |
| City of Derry Building Society | City of Derry Building Society | UK | |
| Close Brothers Savings | Close Brothers Limited | UK | |
| Clydesdale Bank | Clydesdale Bank plc | UK |
|
| Clydesdale Bank International | Clydesdale Bank International | Guernsey | |
| The Co-operative Bank | The Co-operative Bank plc | UK, Guernsey, Jersey |
|
| Coutts & Co | Coutts & Co | UK | |
| Coventry Building Society | Coventry Building Society | UK |
|
| Cumberland Building Society | Cumberland Building Society | UK | |
| D | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Darlington Building Society | Darlington Building Society | UK | |
| Derbyshire Building Society | Nationwide Building Society | UK |
|
| Dudley Building Society | Dudley Building Society | UK | |
| Dunfermline Building Society | Nationwide Building Society | UK |
|
| E | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Earl Shilton Building Society | Earl Shilton Building Society | UK | |
| Ecology Building Society | Ecology Building Society | UK | |
| Egg | Yorkshire Building Society | UK |
|
| F | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Fairbairn Private Bank | Fairbairn Private Bank | Isle of Man | |
| first direct | HSBC Bank plc | UK |
|
| FirstSave | FBN Bank (UK) Ltd | UK | |
| First Trust Bank (NI) | AIB Group (UK) plc | UK |
|
| Furness Building Society | Furness Building Society | UK | |
| G | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Governor Money | Family Investments | UK | |
| H | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Halifax | Bank of Scotland plc | UK |
|
| Halifax International | Halifax International | Isle of Man | |
| Hanley Economic Building Society | Hanley Economic Building Society | UK | |
| Harpenden Building Society | Harpenden Building Society | UK | |
| Hinckley & Rugby Building Society | Hinckley & Rugby Building Society | UK | |
| Holmesdale Building Society | Holmesdale Building Society | UK | |
| HSBC | HSBC Bank plc | UK |
|
| HSBC Bank International | HSBC Bank International | Jersey | |
| I | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| ICICI Bank UK | ICICI Bank UK plc | UK | |
| ING Direct (UK) | ING Direct NV | EEA - Netherlands | |
| Intelligent Finance | Bank of Scotland plc | UK |
|
| Investec Bank (Channel Islands) Ltd | Investec Bank (Channel Islands) Ltd | Guernsey | |
| Investec Bank plc | Investec Bank plc | UK | |
| Ipswich Building Society | Ipswich Building Society | UK | |
| Islamic Bank of Britain | Islamic Bank of Britain | UK | |
| Isle of Man Bank | Isle of Man Bank | Isle of Man | |
| J | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Julian Hodge Bank | Julian Hodge Bank Ltd | UK | |
| K | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Kleinwort Benson Bank | Kleinwort Benson Bank | Guernsey | |
| KRBS | KRBS | UK | |
| L | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Leeds Building Society | Leeds Building Society | UK | |
| Leek United Building Society | Leek United Building Society | UK | |
| Lloyds TSB | Lloyds TSB Bank plc | UK |
|
| Lloyds TSB International | Licensed in Jersey | Gibraltar Guernsey Isle of Man Jersey | |
| Loughborough Building Society | Loughborough Building Society | UK | |
| M | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Manchester Building Society | Manchester Building Society | UK | |
| Mansfield Building Society | Mansfield Building Society | UK | |
| Marfin Laiki Bank | Marfin Popular Bank Public Company Ltd | UK | |
| Market Harborough Building Society | Market Harborough Building Society | UK | |
| Marks & Spencer Money | Marks & Spencer Financial Services plc | UK | |
| Marsden Building Society | Marsden Building Society | UK | |
| Melton Mowbray Building Society | Melton Mowbray Building Society | UK | |
| Metro Bank Plc | Metro Bank Plc | UK | |
| Monmouthshire Building Society | Monmouthshire Building Society | UK | |
| N | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| National Counties Building Society | National Counties Building Society | UK | |
| National Savings & Investments | An executive agency of the Chancellor of the Exchequer | 100% backed by HM Treasury | |
| Nationwide Building Society | Nationwide Building Society | UK |
|
| Nationwide International | Nationwide International | Isle of Man | |
| NatWest | National Westminster Bank plc | UK | |
| NatWest Offshore | NatWest Offshore | Gibraltar | |
| Newbury Building Society | Newbury Building Society | UK | |
| Newcastle Building Society | Newcastle Building Society | UK | |
| Northern Bank | Northern Bank Limited | UK | |
| Northern Rock | Northern Rock plc | UK |
|
| Norwich & Peterborough Building Society | Yorkshire Building Society | UK, Gibraltar |
|
| Nottingham Building Society | Nottingham Building Society | UK | |
| P | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Penrith Building Society | Penrith Building Society | UK | |
| Permanent Bank International Ltd | Irish Life & Permanent plc | Isle of Man | |
| Post Office® | Bank of Ireland (UK) plc | UK Note: NS&I products sold via the Post Office are 100% backed by HM Treasury |
|
| Principality Building Society | Principality Building Society | UK | |
| Progressive Building Society | Progressive Building Society | UK | |
| R | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Raphaels Bank | R Raphael & Sons plc | UK | |
| Royal Bank of Canada (CI) | Royal Bank of Canada (CI) | Guernsey Jersey | |
| Royal Bank of Scotland | Royal Bank of Scotland plc | UK | |
| RBS International | RBS International | Gibraltar | |
| S | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Saffron Building Society | Saffron Building Society | UK | |
| Saga | Bank of Scotland plc | UK |
|
| Sainsbury's Finance | Sainsbury's Bank plc | UK | |
| Santander | Santander UK plc | UK |
|
| Santander Private Banking | Santander Private Banking | Jersey | |
| Scottish Building Society | Scottish Building Society | UK | |
| Scottish Widows Bank | Scottish Widows Bank | UK | |
| Secure Trust Bank | Secure Trust Bank plc | UK | |
| Shawbrook Bank | Shawbrook Bank Limited | UK | |
| Shepshed Building Society | Shepshed Building Society | UK | |
| Skipton Building Society | Skipton Building Society | UK |
|
| Skipton International Limited | Skipton International Limited | Guernsey | |
| Smile | The Co-operative Bank plc | UK |
|
| Stafford Railway Building Society | Stafford Railway Building Society | UK | |
| Standard Bank Offshore | Standard Bank Offshore | Isle of Man | |
| Standard Life Cash Savings | Barclays Bank plc | UK |
|
| State Bank of India | State Bank of India | UK | |
| Swansea Building Society | Swansea Building Society | UK | |
| T | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Teachers Building Society | Teachers Building Society | UK | |
| Tesco Bank | Tesco Personal Finance plc | UK | |
| Tipton & Coseley Building Society | Tipton & Coseley Building Society | UK | |
| Triodos Bank | Triodos Bank NV | EEA – Netherlands | |
| Turkish Bank (UK) | Turkish Bank (UK) Ltd | UK | |
| U | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Ulster Bank | Ulster Bank Limited | UK | |
| United National Bank | United National Bank Limited | UK | |
| United Trust Bank | United Trust Bank Limited | UK | |
| V | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Vanquis Bank | Vanquis Bank Ltd | UK | |
| Vernon Building Society | Vernon Building Society | UK | |
| Virgin Money | Northern Rock plc | UK | |
| W | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Weatherbys Bank Limited | Weatherbys Bank Limited | UK | |
| Wesleyan Bank | Wesleyan Bank Limited | UK | |
| West Bromwich Building Society | West Bromwich Building Society | UK | |
| Y | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Yorkshire Bank | Clydesdale Bank plc | UK |
|
| Yorkshire Building Society | Yorkshire Building Society | UK |
|
| Z | |||
| Name | Banking Licence | Protection Scheme | Brands under the same Licence |
| Zurich Bank International Ltd | Zurich Bank International Ltd | Isle of Man | |
The source of this table is Moneyfacts.co.uk
Read more: http://www.dailymail.co.uk/money/saving/article-1630421/Savings-compensation-protection-Bank-ownership-licences.html#ixzz1wSymMteR
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