The deposit protection checker allows consumers to enter the details of their savings accounts and where they are held so they can see whether their savings are protected under the FSCS.
If the clients’ funds exceed the £85,000 limit for FSCS protection or if the money is placed in an institution that is not regulated by the Prudential Regulation Authority, the tool shows how much money could be at risk.
Gareth Reynolds, Principal IFA at Staffordshire-based MGS Financial, said: “Clients with advisers should have been informed anyway about the existence of the FSCS and what it covers, but for DIY investors, it is certainly a good thing and you would hope that Hargreaves and other execution-only sites would provide a link to this tool.”
According to Mark Neale, chief executive of FSCS, the online shortcut was created after consumers were forced to go through their provider, call the FSCS or check a long-list of authorised firms against the online Financial Services Register database to check the status of their savings.
Mr Neale said: “We are still finding that too few people are aware of the protection we provide. Yet we know that those who do know about FSCS feel more confident.
“The new protection checker is easy and quick for consumers to use. It confirms FSCS protection at a glance. This should help to provide consumers with additional reassurance about the safety of their savings – and also to know whether their money is at risk, so that they can consider their options.”