Fscs Protection
LIST OF BANKING AND SAVINGS BRANDS PROTECTED BY THE SAME FSCS COVERAGE COMPILED BY THE BANK OF ENGLAND AS AT 05 DECEMBER 2019 Banking and Savings Brand PRA-authorised institution FRN Other deposit brands covered by FSCS coverage 512956 AA Savings. 512956 Post Office Money 512956 Bank of Ireland (UK) Plc 512956 Bank of Ireland (UK). FSCS protects temporary high balances in your bank account, building society account or credit union account of up to £1million for 6 months. The protection begins from the date the temporary high balance is credited to an individual depositor's account, or to a client's account on an individual's behalf. This date may be earlier than the date the temporary high balance was credited to your account with the failed.
The main protection is from the Financial Services Compensation Scheme (FSCS). It was set up to cover people's savings in the event that a bank were to go bust. The FSCS protects 100% of the first £85,000 you have saved, per financial institution (not per account). The FSCS is a government fund that exists to help consumers in the event of a bank collapse. You are protected for 100% of the first £85,000 per financial institution. If you opened a Cash LISA before 23rd April 2020, your account is powered by our partner OakNorth Bank. The FSCS - Financial Services Compensation Scheme. The Financial Services Compensation Scheme (FSCS) is the compensation fund of last resort for customers of authorised financial services firms. If a firm is in default or ceases trading the FSCS may be able to pay compensation to its customers.
If your bank or building society fails and can’t pay back your money, FSCS can automatically pay you compensation. Your bank or building society must be authorised by the Prudential Regulation Authority - check this on the Financial Services Register.
Where you hold your money could affect how much compensation you’re entitled to. If you have money in multiple accounts with banks that are part of the same banking group (and share a banking licence) we have to treat them as one bank. This means that our compensation limit applies to the total amount you hold across all these accounts, not to each separate account.
For our compensation limit to apply to each individual account, you’d need to hold money with different banks that don’t share a licence. You can search the financial services register on the Financial Conduct Authority’s website to see which banks share a licence or download this list of banks that share a license (pdf 0.3MB) from the Bank of England.
You can easily see how much of your money is protected by using our protection checker. Click the button to get started.
If you hold money with a UK-authorised bank, building society or credit union that fails, we’ll automatically compensate you.
- up to £85,000 per eligible person, per bank, building society or credit union.
- up to £170,000 for joint accounts.
We protect certain qualifying temporary high balances up to £1 millionfor 6 months from when the amount was first deposited.
You don’t need to do anything – FSCS will compensate you automatically.
You can easily see how much of your money is protected by using our protection checker.
How long will a claim against a failed bank or building society take?
7 days
I used a savings marketplace/cash platform to deposit my money in multiple accounts with different banks. How long will my claim take?
I’ve got a small business account and a personal account with the same bank - are both accounts covered up to £85,000?
If your business is a separate legal entity, e.g., a limited company or LLP, you could claim up to £85,000 for each account. If you’re a sole trader (e.g., Mr Smith t/a Smith Motors) you wouldn’t be entitled to two separate claims – you could claim up to £85,000 in total.
Although joint account holders are usually entitled to make separate deposit claims for £85,000 each, if the joint account holders hold the account as partners in a business, then the business partnership is only entitled to a single claim of £85,000 (not one claim per business partner).
See our small businesses, limited companies and charities page for more information.
Are deposits covered if they’re held in a client account, or by a nominee company?
See our answer on whether we cover deposits held in client accounts.
By Rachel Mortimer
The Financial Services Compensation Scheme has extended its protection for consumers with temporary deposits of up to £1m amid concerns surrounding access to banking services in the aftermath of the coronavirus crisis.
Later this week the financial lifeboat body will temporality increase the length of time for which it will protect temporary high balances of up to £1m from six to 12 months.
The protection will apply in scenarios where deposit-takers fail handling temporary balances such as funds deposited in preparation for buying a main residence, those paid in relation to a divorce, redundancy payout or compensation when someone dies.
The extension will only apply to deposit-takers which fail after August 6, when the extra protection comes into force.
Caroline Rainbird, chief executive at the FSCS, said: 'The coronavirus pandemic has been very worrying for everyone, and people are understandably concerned about the possibility of losing their temporary high balance should their deposit taker fail.
'The temporary extension of FSCS's protection from six to 12 months will do much to reassure them should the worst happen during these uncertain times.'
Fscs Protection Pensions
The FSCS said the move comes in response to the impact of Covid-19 on the residential property and investment markets, with some consumers facing reduced access to banking services.
Where a deposit-taker fails after August 6 the extension will apply to both new and existing temporary high balances received.
Funds deposited into an account with an authorised UK bank, building society or credit union in February 2020 - with the six-month coverage due initially to end in August 2020 - will now be protected until February 2021.
The levy which funds the FSCS has hit the headlines in recent weeks, with some advisers warning its increasing bill could force them to increase their fees in an attempt to balance the books.
Fscs Protection For Investment Bonds
It comes amid frequent concerns raised by the industry that the current levy set-up means the 'polluter' often fails to pay for consumer compensation, with firms remaining in the industry left to pick up the bill.
rachel.mortimer@ft.com
Fscs Uk
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