Consumers warned to ensure savings are protected | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 21/10/2019

Consumers who have savings deposits with Clydesdale Bank, Yorkshire Bank, B and Virgin Money are being warned to ensure that their savings continue to be protected under the Financial Services Compensation Scheme (FSCS) as the transfer of Virgin Money to Clydesdale Bank took place today, creating one bank with a total of approximately 6.4m customers.

Savers who have savings deposits with these brands will only be able to protect all their money under the FSCS if they have £85,000 or less deposited with these brands in total. Those have a total of more than £85,000 saved in accounts with any of these brands will need to deposit their money into a bank on a separate banking licence to ensure their funds remain protected by the scheme.

What is the Financial Services Compensation Scheme?

The FSCS ensures that savers money is protected should a bank run into financial trouble. Under the scheme, cash deposits of up to £85,000 for a sole account are protected, meaning that if the bank goes bust savers will be compensated up to this amount that they had deposited into the bank. The scheme only protects a maximum of £85,000 deposited into banks under an individual banking licence, which means that if a saver has more than £85,000 deposited across the Virgin Money, Clydesdale Bank, Yorkshire Bank or B brands, the excess will not be protected.

Virgin Money transfers operations to CYBG

Last year CYBG, which owns Clydesdale Bank, Yorkshire Bank and B, acquired Virgin Money in a £1.7bn deal and has today secured court approval under banking regulations for the transfer of operations to take place. According to a statement released by Virgin Money, this transfer should not disrupt its customer’s day-to-day banking and everything will continue to feel the same as before the transfer took place. 

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