Think your money is safe in a bank?

[dutchman]

Think again!

When Synapse Bank in California went bust last month customers assumed they were covered by the Federal Deposit Insurance scheme, very similar to the one operated by the Bank of England in this country.

The trouble is there is a dispute over how much is owed by who and it could be years before customers see any of their money again, if at all.

In the meantime bill payments such as direct debits and standing orders are frozen, plunging customers into debt through no fault of their own.

Banking app customers are particularly vulnerable as these are often operated by third parties which in theory are covered by the Bank's guarantee but not necessarily in practice, as users of the banking app 'Yotta' just found out.