HUNDREDS of thousands of savers with Dunfermline building society were assured today that they would not lose any protection because of the society’s takeover.

Nationwide, Britain’s biggest building society, it to take on Dunfermline’s 34 branches, its £2.35 billion of deposits and its £1.02 billion good-loan book, after the Scottish society was put up for sale following a £26 million loss.

Nationwide, which will also take on Dunfermline’s 530 staff, said the 140-year-old brand would remain intact and said it would be business as usual for Dunfermline’s 300,000 members.

However, taxpayers could be left with losses following the deal, as the Treasury has taken on about £1 billion of its toxic debt, mostly commercial-property loans.

We answer the key questions for savers and borrowers.

Q: I am a saver. What does this mean for me?

A: Your savings have been transferred to Nationwide building society, although they will continue to operate under the Dunfermline brand.

Deposits continue to be covered up to a maximum of £50,000 per person by the Financial Services Compensation Scheme, or £100,000 for joint account holders.

Graham Beale, chief executive of Nationwide, said: “This is good news for the members of Dunfermline who are now joining the world’s largest building society. As members of a solid, stable and dependable organisation, members of Dunfermline can be assured that their savings are safe.”

Q: I have savings accounts with both Dunfermline and Nationwide. Will I get the same level of protection?

A: Yes. The Financial Services Authority (FSA), the City watchdog, has introduced a temporary rule change allowing banks or building societies which acquire the savings accounts of another institution to keep separate compensation limits.

This means that customers with accounts at both Nationwide and Dunfermline will not lose any protection – they will continue to benefit from cover of up to £50,000 with each society.

The FSA did the same when Nationwide merged with Cheshire and Derbyshire building societies at the end of last year. If you had Cheshire or Derbyshire accounts before December 15, when the merger went through, and you also have a Dunfermline account, you are covered for £50,000 for each account.

This will be reviewed at the end of September this year.

Q: So what will happen when this protection is reviewed in September?

A: The FSA is currently conducting a review of the entire FSCS. One proposal is that protection should apply per brand, rather than per institution as it does now. This would make it unnecessary for the FSA to allow a temporary change in the rules, as it has done with the Dunfermline deal.

A spokesman for Nationwide said: “We are hopeful that by September, changes will have been made to the FSCS.”

Q: I have a fixed-term bond. Can I get my money out?

A: Your terms and conditions are likely to state that you cannot get out without penalty, and these will continue to apply. However, Dunfermline and Nationwide insist your money is safe and that there is no need for you to move your cash.

Q: What about Isas?

A: Savers were warned they could lose their tax breaks if they closed their Dunfermline Isas. Thousands of Northern Rock savers made that mistake when the bank was taken into government ownership.

If you want to move your Dunfermline Isa away from Nationwide building society to another manager, you must ask your new Isa manager to arrange the transfer. Under HM Revenue & Customs rules, you cannot maintain the tax-free status of the money if you withdraw it from the Dunfermline Isa account yourself. More information on the HMRC rules around ISA transfers can be found at www.hmrc.gov.uk/isa

Q: Can I still go into my branch?

A: Yes it’s business as usual at Dunfermline branches and you should be able to operate your account in the normal way.

Q: I have a Dunfermline mortgage. What does the deal mean for me?

A: Most mortgages are being transferred to Nationwide. The terms and conditions will be unaffected and you should continue making repayments to the new society.

Q: I have accepted a mortgage offer from Dunfermline, and I am due to complete on my house purchase shortly. What should I do?

A: Don’t worry. Nationwide will take on the mortgage and it shouldn’t affect your completion. You will continue to owe the same amount of money to Nationwide.

Q: I have an outstanding mortgage offer from Dunfermline. Is it still valid?

A: Yes. Nationwide Building Society will honour the mortgage offer and will be in touch shortly.

Q: I have completed an application for a mortgage from Dunfermline but have not yet received a response. What should I do?

A: Nationwide Building Society will review your application and let you know if it can make you an offer.

Q: Could the same thing happen at other building societies?

A: Last week John Goodfellow, chairman of the Building Societies Association, did not rule out rescue deals for one or two more members, but he assured savers that all savings up to the £50,000 limit were safe.