Thanks maxstream, I'll sleep easier now :)

I'm always switching my money around and I've found Santander one of the easiest to use online and, unlike some other financial institutions, they gave me adequate warning that the bonus period on my savings account was coming to an end.

ngeshas:

the UK Government that will step in to support a foreign bank.

I am guessing that your money is with Santander UK Plc which is a UK bank covered by the FSCS. Other parts of the group, like Santander Private Banking, Jersey will be covered by whatever schemes are in place on Jersey or wherever they are registered.

Santander has never been the most prudent bank and they would be low down on my list of banks to do business with, but any money in mainstream accounts will be as safe there as with any other bank with overseas interests.

With the news this morning that the Spanish government has nationalised one of the country's banks I'm wondering about the safety of my funds in Santander accounts. Or am I worrying needlessly?

Yes, I know about FSC compensation but I'd rather have my funds in a safe and secure account somewhere.

What do you think?