In the past the financial stability of banks, insurance companies and investment houses was probably not given the prominence it deserved by investors when deciding on a home for their money. Surely if you stuck with the large, well-known companies your money would be safe.
In 2008 this became a lesson sorely learned and hardly a week went by without the likes of Lehman Brothers, RBS and Northern Rock hitting the headlines.
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Financial Services Compensation Scheme (FSCS)
These limits have since increased to £85,000 but there is a widely held misconception that they apply to all investments, whether they are in deposit accounts, mutual funds or life assurance and pension funds