How To Making Your Savings Safer

The team at Dosh Express have announced five steps customers can take to protect their finances

Spread Your Savings

It’s the most obvious advice but also the most important. Naturally, splitting money between different banks provides people with better protection should the worst happen. Under the Financial Services Compensation Scheme (FSCS), anyone banking with a UK regulated institution is covered for up to £85,000 each. However, it is worth remembering that `sister` companies, such as Halifax and the Bank of Scotland, do not count as separate banks.

Consider Where You Save

The state owned bank, National Savings and Investments is fully backed by the government, and many choose to put their savings here as it is often deemed the safest location. Whilst the rates aren’t always as preferable as others, the government itself would have to go bust for savings to be affected.

Be Careful With Foreign Banks

Under the FSCS, only those with UK regulated banks are entitled to compensation. Whilst this still covers many foreign owned banks, such as Santander (which are still UK regulated), there are still banks in this country, such as ING Direct which do not fall under the Government backed system.

Know your rights

As previously stated, those banking with a UK regulated institution are entitled to up to £85,000 per bank. Not everyone is aware however, that those with joint accounts are entitled to up to £170,000.

Repay your debts

Most credit cards and loans cost a lot more in interest than you earn on your savings, so many choose to repay their debts with their savings.

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