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FSCS reassures on Northern Rock/Virgin cover

FSCS reassures on Northern Rock/Virgin cover

Category: Investments

Updated: 18/04/2017
First Published: 18/11/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Savers who have invested money with both Northern Rock and Virgin Money have been reassured that their savings will remain covered despite yesterday's £747 million deal.

The agreement will see Virgin Money take over Northern Rock and is expected to be rubber-stamped in January.

The Financial Services Compensation Scheme (FSCS) has sought to reassure savers who have money with both that their current compensation cover will remain.

The scheme confirmed that from 1 January 2012, both organisations will maintain separate banking licences.

"Those people who have money with both Northern Rock and Virgin Money can be reassured that the two brands will operate under different banking licenses," Mark Neale, chief executive of the FSCS, said.

"Those with large amounts of cash should remember to always try to keep within the £85,000 FSCS deposit limit, or £170,000 for joint accounts, per banking licence to protect their money.

"Anyone with savings above those limits should consider spreading their money around to ensure it is safe."

The FSCS protects money in banks, building societies and credit unions authorised by the Financial Services Authority.

It is funded by financial institutions and has paid more than four million people to the tune of £23 billion in compensation since 2001.

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