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 the years, I had built up £150,000 in a savings account and never really thought too much about how my money was protected. I had always just assumed that my money was safe in the bank.

When I looked into it, I discovered that eligible deposits are FSCS protected from your first pound up to £120,000 per person, per UK-authorised bank, building society or credit union.

That was great news, of course, but for me that meant if my bank failed, £120,000 of my savings would be protected, but the remaining £30,000 would be above the compensation limit and I would not get that money back.

Rather than leave part of my savings unprotected, I moved £30,000 to an account with a bank in a different banking group. FSCS protection applies per banking license, and so that way, all of my savings were covered.