Will my savings be fully protected under the £15,000 Isa limit?

I have recently been reviewing my savings in the context of where they are invested and protected by the £85,000 guarantee. I have been shocked to find that a number of the major institutions are in fact all covered by the same banking licence.

How can this possibly be perceived to be fair and in the best interests of savers?

MJ, North Yorkshire

The Financial Services Compensation Scheme (FSCS) is an independent compensation fund of last resort established in December 2001. It was set up to compensate customers if a financial services firm is unable to pay claims against it.

It has recently been running a consumer awareness campaign with radio adverts voiced by actor Benedict Cumberbatch.

The FSCS protects deposits of up to £85,000 per person per institution, and investments worth up to £50,000.

The £85,000 limit could be deposited in a current account, savings account, cash Isa or savings bond. The FSCS claims that 98pc of the UK population has less than £85,000 in savings balances.

However, a number of building societies and banks are covered by the same authorisation, which means that only £85,000 in total across all brands will be protected.

The FSCS warned in April that the new Isa limit of £15,000, which comes into force in July, could mean savers reach their protected limit quicker than before.

Those putting money in an investment Isa could find it takes just a few years with modest growth to breach the threshold if they put the maximum Isa allowance into the one account.

For example, the same Lloyds Banking Group authorisation covers the AA, Bank of Scotland, Birmingham Midshires, Capital Bank, Halifax, Intelligent Finance, Saga and St James's Place Bank.

Andrew Hagger of financial website MoneyComms said: "The reason that some brands are covered by the same licence is either due to previous mergers and/or a previously non-financial brand, such as AA or Saga, using the services of an existing licenced deposit taker."

A table showing the main institutions is below. A full list of the multiple brands and their authorised institution can be found on the Financial Conduct Authority website.

TSB, which split away from Lloyds Bank last year, already has its own stand alone banking licence.

"I think that providers with a brand that share an authorisation and FSCS limit should be forced to increase awareness of the potential to exceed the £85,000 protection limit if funds are also held with another shared brand," said Mr Hagger.

Bank customers can check whether their money is protected by visiting the FSCS website. Customers enter where their money is saved and the deposits with each brand, and are told instantly whether they are covered by the FSCS.

The Telegraph also has a complete table showing which banks and building societies share an authorisation.