FSCS £3M Campaign

FundWeb reports that the Financial Services Compensation Scheme (FSCS) is to spend £3M on a second advertising campaign to make consumers aware their savings are safe if banks go bust. The first campaign that cost £4M in 2011 was halted, after it failed to make a positive impact.

The campaign will be funded by banks and building societies, and will run until 31 March 2014.

The rationale for the scheme was explained by FSCS chief executive Mark Neale:

“Our research showed a lack of understanding and knowledge about the protection we provide. We want to reassure the majority their money and savings are safe, and warn those who unwittingly put their money at risk.

We need to build awareness over time and cannot wait for the next crisis to try to engage people. By then it will be too late and queues will already be forming.”

In other words the banking industry is scared stiff of a run on the banks as and when the next crisis occurs.