How protected are Santander savings?

By THIS IS MONEY
Updated: 10:41 EST, 22 June 2009

I read that Abbey, Bradford & Bingley and Alliance & Leicester are all being incorporated under the Santander name.

Rebranding: But will my savings be affected?

What will this mean for the separate protections that savers currently have under the Financial Services Compensation Scheme? J.H.

Jason Witcombe, director of Evolve Financial Planning replies: Savers are covered under the FSCS for deposits of up to £50,000 with a particular banking organisation.

At present, Bradford & Bingley and Abbey share one banking licence and Alliance & Leicester has a second.

Therefore, if a saver had £50,000 with each of these three banks, only a total of £100,000 would be covered under the FSCS.

I understand that the brands will remain legally distinct until the end of 2010.

More information will become available in the coming months, but the result could be that these licences will be combined into one Santander licence, meaning a limit of £50,000 per individual.

If in any doubt, an easy solution is to move money into an account with another institution to diversify your savings.