Many of us have asked ourselves the question: is my money safe in the bank? Learning a little about how banks keep your money safe can really help to ease those worries.Â
Modern banking often takes place online, through a browser or a mobile app. Banks use a number of different security practices to ensure that your account details and funds are not vulnerable. This includes secure two-factor authentication processes, the use of biometric data such as fingerprints, and encrypted data that can’t be read by hackers. They will also monitor your transactions and raise the red flag if they see any unusual activity.
It’s important that you do your bit to support these processes – for instance by creating unique passwords that are not easy to guess, and never sharing your login details with others.Â
One of the biggest concerns for modern banks is financial fraud. This happens when people obtain money from you under false pretences. Banks help to protect their customers against fraud by regularly sharing information about common types of fraud, how to spot them and how to avoid being caught out. If you do become a victim of fraud then your bank should also help you retrieve the money that you’ve lost.
Again, there’s lots that you can do to protect yourself in this area. Beware of phone calls and emails asking you to transfer money or share account details. If in doubt, contact your bank directly to check that their request is genuine.
Your money is also protected by the FSCS – an independent service which guarantees a certain amount of protection in the unlikely event that your bank goes bust. Individuals are covered for up to £85,000 per bank (so if you hold money in multiple accounts, each one will be protected).
Since they aim to pay compensation within 7 days, this should give most people peace of mind when asking is my money safe in the bank.
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