Manchester Building Society under threat

21st April 2016

Manchester Building Society has contacted its savers recommending they reduce savings, where necessary, to the compensation limit afforded by the Financial Services Compensation Scheme (FSCS), currently £75,000 per person, per banking licence. The warning is due to 'material uncertainty' (their words not ours) over its future.

With any bank or building society, we would stress that savers should try to utilise the FSCS (or equivalent) protection or at least reduce their balances to mitigate any risk, though this can be harder for particularly large balances.  It can also be tricky given that some providers share a banking licence, such as Halifax, who share a licence with Birmingham Midshires, the AA (accounts opened before September 2015), Aviva, Bank of Scotland, Intelligent Finance, SAGA and St James Place, meaning that only £75,000 is protected across all of these providers.

Although Manchester Building Society would be more likely to merge with another provider rather than fail, it would be very wise to heed their advice to move any money over the £75,000 FSCS limit, to ensure your money is fully protected should the worse happen.

If you're concerned in any way about the safety of your savings, you can contact us for help in ensuring that your money is fully protected. And if you have more than £100,000 in savings and would like us to manage your cash for you, to find the very best rates, manage the paperwork, as well as keeping your money protected under the FSCS, call us and speak to one of our specialist savings advisers on 0800 321 3581 and ask about our Concierge Cash Management Service.

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