I am trying to get the best interest on my savings and usually only use the high street banks. Is using newer banks, such as Vanquis or Atom, as safe? I am tempted, but nervous.
BG, by email
As long as the provider is a member of the UK Financial Services Compensation Scheme (FSCS) you have nothing to fear. It will cover all deposits up to £85,000 per person (double for a joint account), per bank. To be prudent, only deposit up to £85,000 in one provider.
But make sure your chosen banks are not part of the same group. Birmingham Midshires is a division of Bank of Scotland which also owns Halifax, meaning you would only get cover for one £85,000. As interest rate rises are in the offing, I wouldn’t tie my money into fixed-rate bonds of any length.
We welcome letters but cannot answer individually. Email us at consumer.champions@theguardian.com or write to Consumer Champions, Money, the Guardian, 90 York Way, London N1 9GU. Please include a daytime phone number. Submission and publication of all letters is subject to our terms and conditions
