What is the Financial Services Compensation Scheme?

The Financial Services Compensation Scheme (FSCS) is the UK's deposit guarantee scheme. It pays compensation to consumers in the unlikely event that a financial services firm (covered by the scheme) they save or invest with stops trading. It’s subject to certain conditions.

For banks and building societies with eligible deposits, the FSCS compensation limit is £120,000 per banking licence. The limit applies to the combined amount that you hold in all accounts with banks operating under a single banking licence. It doesn’t apply by savings account or bank brand.

This means that when considering how to spread deposits to maximise FSCS cover, you should consider the following:

• Some banks and building societies share a banking licence. Deposits with banks under the same licence are protected up to £120,000 in total. See a list of banks and building societies under the same banking licence.
• The limit applies to the combined amount across all accounts you hold under a single banking licence.
• The limit includes any interest you earn on your savings, as well as the original amount you deposited.

If you’re an individual customer, the cash you hold with us is eligible for protection under the FSCS. To reduce your exposure to the risk of any individual bank failing, we offer the option to hold your cash across a range of carefully selected banks.

To learn more, explore how the FSCS protects cash you hold with us or visit the FSCS website.