Are savings accounts safe?
This guide explains how we keep your money protected when you choose to save with a Nationwide ISA or savings account. We explore the Financial Services Compensation Scheme, including what, who and how much of your savings it protects.
What's on this page
The 3 main threats to your savings
Savings accounts are a safe place to store your money. But as with all accounts, there are risks to be aware of and things you can do to help keep your savings secure.
Fraud and scams
Anyone can become a victim of scams. While most financial scams target current accounts, criminals can also trick you into withdrawing money from your savings. On our fraud hub we have lots of useful advice on how to avoid common scams. With our Scam Checker Service, you can also talk to us if you're not sure about a payment you're about to make.
Provider failure
While unlikely, banks and building societies can go out of business. If you save with a provider that is not authorised by the Prudential Regulation Authority, this could put your money at risk. We are an authorised provider. So Nationwide savings accounts and ISAs are covered by the independent Financial Services Compensation Scheme (FSCS). This protects up to £120,000 of your eligible deposits per person, per provider.
Your actions
Risky decisions or simple mistakes can be a risk to your savings. For example, storing your money in risky assets, like cryptocurrency, or withdrawing from the wrong account. Savings kept in cash can also be difficult to recover if they are lost or stolen. You have a responsibility to keep your savings secure, but there are ways we can help you. For example, you can learn common scamming tricks with our digital awareness video.
The Financial Services Compensation Scheme
The Financial Services Compensation Scheme (FSCS) is designed to keep your money secure. It covers different types of financial products, such as savings, insurance policies and mortgage advice.
For your savings, it keeps your deposits safe in the unlikely scenario that your provider fails. The FSCS covers up to £120,000 of your eligible deposits per person, per provider.
All building societies and banks authorised by the Prudential Regulation Authority (PRA) are covered by the FSCS.
The FSCS is an independent service. The PRA is part of the Bank of England.
How Virgin Money customers are covered
Virgin Money’s business has now transferred to Nationwide. This means that the FSCS protection applies to your total combined eligible deposits with Virgin Money and Nationwide, up to a total of £120,000.
How to check your deposits are protected
There are 2 steps to checking your deposits are covered by the FSCS.
Check your provider online
Go to the deposits protection checker (opens in a new window) and enter your details. You can also look for the ‘FSCS Protected’ badge on your provider’s website. But beware of scammers who create fake banking websites with the badge.
Confirm your deposits are eligible
The FSCS covers your ‘eligible’ deposits. Here are some examples of what is and isn’t eligible.
Examples of what the FSCS covers:
- Savings accounts
- Cash ISAs
- Current accounts
- Joint savings accounts
Examples of what the FSCS does not cover:
- Cryptoassets
- Foreign accounts
- Stocks and shares ISAs
- Losses from poor investment performance
Joint savings accounts and the FSCS
The FSCS guarantees up to £120,000 of your eligible deposits per person, per provider.
Because joint savings accounts have 2 account holders, they are covered up to £240,000.
The FSCS assumes that the money in joint savings accounts is shared equally by both account holders. So each account holder should receive an equal share of any compensation claim.
Saving more than the protection limit
There are a few things to be aware of if you need to deposit more than £120,000.
- You get a separate limit for each authorised provider.
So consider sharing your high-value savings across different authorised providers. - There are separate protections for temporary high balances.
If you have a qualifying life event, like a house sale, you could be covered up to £1.4 million. This is regarded as a temporary high balance (opens in a new window). - Some deposits have unlimited protection.
Disability or incapacity benefits plus compensation for personal injury have unlimited protection for 6 months.
Protecting your savings from fraud and scams
There are 2 main ways to protect your savings:
- deposit your money with an authorised provider, and
- understand the techniques that scammers use.
You can learn more about our fraud and security support and how to keep your money safe on our fraud hub.
Frequently asked questions
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