You are right that £50,000 in cash in the bank is now completely protected by the Financial Services Compensation Scheme. The same applies to money held in a building society. There are several other types of investment that carry compensation. If your savings are held by an investment company that collapses – for example, a stockbroker – then you are covered for 100% of the first £30,000 and 90% of the next £20,000, making a top payout of £48,000. If your money is in a long term insurance scheme – for example some pension plans or a life policy – then you are 100% protected for the first £2,000 plus 90% of the rest of your claim, with no upper limit. Insurance that is not linked to your life is also protected. Compulsory third party motor insurance is 100% covered, with no limit. Other policies, such as home insurance, are guaranteed for all the first £2,000 plus 90% of any balance of your claim. Your bonds sound as if they are linked to life cover. If so, your first £2,000 is safe, along with 90% of the balance.
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