A survey has revealed that millions of people are unaware of the financial products covered by the Financial Services Compensation Scheme (FSCS), highlighting a need for increased awareness of product protection. Whilst 76% of those questioned were aware that the scheme covered savings deposits up to the value of £85,000 in the event of a financial institution going out of business, 18% said they thought gift cards were protected.
An additional 16% believed mobile phone top-ups are covered, whilst 15% were under the impression that book tokens are included under the scheme.
The findings of the study have concerned the FSCS, which has urged consumers to check whether their products are protected prior to taking them out.
Chief executive of FSCS, Mark Neale, said: "FSCS protects customers of authorised firms which go out of business.
"Peer-to-peer lending schemes, gift cards, mobile phone top-ups or book tokens are not authorised products so people will not get their money back from FSCS if the companies behind them fail."
Depositor protection schemes if a bank goes bust Compare the best savings rates
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