How safe are banks?

[watervole]

What are the odds of a major high street bank, such as Barclays, folding?

What kind of legal protection exists for people's savings?

Does anyone know?

I'd like to know just how safe my money is.

waveney and I are discussing the security of different types of long-term savings and whether money in a bank is guaranteed as a low-return, but high security option.

Comments

[vicarage.livejournal.com]

The FSA have a compensation scheme.

"If a bank or building society collapses, you may be at least partially protected by the Financial Services Compensation Scheme. The maximum compensation payment is £31,700 (100% of the first £2,000 and 90% of the next £33,000)."

So spread it round a bit.

I suspect no high-street organisation is under threat, because the repercussions to the rest of the community make it unacceptable for any one to collapse that far.