Northern Rock Promise

[smurfchops]

I know that Northern Rock is now guaranteeing all of the money of all of its present savers. However what are the other banks and building societies promising, if they get into troube, like Northern Rock almost did? Is it �35,000 or �100,000 compensation?

[kempie]

To be precise it is not Northern Rock guaranteeing the money of their present savers but the Bank of England / Government.

Since this is not a blanket bail-out offered to all other Financial Services Authority (FSA) authorised firms, these must rely on the Financial Services Compensation Scheme (FSCS). If an FSA regulated firm is no longer trading or has become insolvent and unable to meet claims made against it, you can turn to the FSCS to safeguard 100% of the first �35,000 of your savings with that firm.