Even if you have bonds designed to be held for a set number of years, your cash can be taken out — but any interest gained since the date of investment is likely to be lost.

When splitting money between banks it is important to check the companies you choose all have separate banking licences.

For example, NatWest and Royal Bank of Scot­land are part of the same parent but are considered two separate companies for FSCS purposes — so savers with £50,000 in each have both full amounts protected.

But HBOS offers Hali­fax, Bank of Scotland, ­Birming­ham Mid­shires and Intelligent Finance accounts as well as providing services for The AA and Saga — yet it operates as one as far as the FSCS is concerned, so only £50,000 is covered across all brands.

Savers can check a bank or building society’s status by calling the Financial Services Auth­ority on 0845 606 1234 or visiting www.fsa.gov.uk