As the Eurozone crisis rumbles on, Brits on the verge of buying in Europe or emigrating there will be understandably concerned about depositing their money in a foreign bank.

Sadly it has been this way since September 2008 when the U.S investment house Lehman Brothers crashed and Northern Rock wasn’t far behind. It’s for this reason that depositors have become justifiably nervous that they might lose their life savings despite it supposedly being “safe” in major banks and building societies.

Although things have improved marginally since 2008, the instability in the Eurozone is bringing old concerns bubbling back to the surface. Here is a rundown of some of the most important ways that you can protect your money in the Eurozone and minimise the risk of losing a penny.

  1. Eurozone countries have Deposit Guarantee Schemes which mean that if your bank fails, you are entitled to claim up to €100,000 back (per bank). In the UK, regulated current accounts, savings accounts and cash ISAs in banks are covered by the government backed Financial Services Compensation Scheme (FSCS) and account holders can claim up to £85,000 back per financial institution.

  2. It is best to spread your savings out to keep them as safe as possible. For absolute safety, save no more than €100,000 in a European bank (£85,000 in any one institution in the UK). It is definitely worth doing this even if you have less than €100,000 because if the bank goes bust the money might be inaccessible while you wait to get it back. Using more than one account reduces risk and means that you will always have access to at least some of your money.

  3. When transferring money between bank accounts in different countries, it is advisable to use currency transfer specialist Smart Currency Exchange, who guarantees you better-than-bank exchange rates and a quick and efficient service. You can get your free quote from currency transfer specialist Smart Currency Exchange by clicking here.

For details of property for sale all over Europe, visit the overseas listings on Rightmove Overseas. To understand the full step-by-step process to buying property abroad, collect the Overseas Guides Company’s guide to emigration here.