Spanish-owned Santander has faced questions about its financial safety this week as the euro crisis deepened, causing rating agency Moody’s to downgrade 16 Spanish banks, including Santander UK.
So is your money safe in the bank? The simple answer is yes. Deposits with the bank are covered under the UK’s Financial Services Compensation Scheme, which protects up to £85,000 of your savings.
A spokesperson said: “Santander operates under a subsidiary model. This means that Santander UK plc is completely autonomous from its parent company.
“This structure acts as a firewall to prevent problems within one part of the group spreading to other units in the event of financial difficulties.
“Santander also operates a firewall approach to borrowing and lending in the markets it operates in. This means that money raised in the UK stays in the UK.”
However, if you have more than £85,000 in Santander, it may be wise to switch the excess to another bank or building society for peace of mind.