Everyone has a lot of questions and concerns when it comes to saving money, especially when it comes to how safe your savings really are. A lot of people believe that it is safer to put their money under the mattress or make a hole in the couch and stuff it into there instead of investing it or putting it into a bank account, purely because banks go bankrupt and investments fail and the result is that you lose all your money. Although this is generally true, because there is no guarantee that any investment company or any bank will never face difficulty and that your money will be perfectly safe all the time, there is hope for the cynical saver.
The Financial Services Compensation Scheme (FSCS) is a government run non-profit organization that works to educate and assist everyone who saves or invests their money. The FSCS will answer all your questions regarding various savings options and investment plans, as well as attend to any claims which you may have against a bank or any other company that offers the services of savings or investments.
The FSCS protects banks, building societies, credit unions, insurance companies, home finance companies, investments, pensions and endowments. Anyone who has lost money or feels that they have been misguided in their investment will be able to place a compensation claim with the FSCS, who will then follow up on the claim and fight on your behalf for compensation.
Naturally, investors keep their eye on the markets, particularly those that they have invested in, but when you hear over the news that a particular company has gone bankrupt, it is normal to feel angry, defeated and depressed as your money washes down the drain. Now with FSCS you can lodge a claim against your investment broker and if the claim is won, you will get compensation.
The FSCS does give people a better sense of security when it comes to saving money or opening up investments, at least now you know that you have a way to fight back when your investment company has done wrong. Although it is still important for you to know exactly what you are investing and where your money is being kept, do not just follow advice, ask questions and make sure you understand everything you are being told by your bank, investment broker and financial advisor.