Half `think ISA savers would lose their money if provider went bust`

Just 49% of respondents to a recent survey for the Financial Services Compensation Scheme (FSCS) were aware that cash ISA savers would get their money back if their ISA provider went bust.

38% of respondents said that they "don`t know", while 13% thought that they definitely would not be compensated.

The Financial Services Compensation Scheme was put in place to help ensure that savers who lost money as a result of financial institutions going bust would get their money back, up to a certain level.

An expert at debt management company Gregory Pennington said: "There are a number of reasons why people may choose not to save. Some can`t afford it, while others may not see the point while rates remain low - and others may be concerned about the safety of their money.

"But it`s important that people understand that savings are still important, and in most cases their savings are safe. Savings deposits are protected for up to £85,000 per person, so most people will be fully covered for any loss that may occur.

"Savings provide important protection against debt and other financial worries. Interest rates may be relatively low, but in a financial emergency a good savings account could still be extremely helpful."



Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.