Are your bank deposits protected

The Financial Services Compensation Scheme (FSCS) is the place to go if your bank or other regulated organisation is unable to pay claims against it.

For most of us this will mean that our deposits with banks authorised to hold deposits by the Financial Conduct Authority (FCA and the Prudential Regulation Authority (PRA) will be able to recover funds up to certain limits.

What are the current limits?

From the 30 January 2017, deposits with approved institutions are covered up to £85,000 per person.

Please note the following:

  1. All your eligible deposits at the same bank are added together and the total is subject to the £85,000 limit.
  2. The limit of £85,000 applies to each person. In the case of joint deposits, the £85,000 limit applies to both depositors.
  3. Deposits held in the name of business partnerships or similar groupings are treated as if made by a single depositor.

Additionally, from 3 July 2015, the FSCS will provide up to a £1 million protection limit for temporary high balances held with your bank. For example, funds held after:

  • The sale of a main residence.
  • A death.
  • The depositor’s marriage or civil partnership, divorce, retirement, dismissal, redundancy or invalidity.
  • The receipt of insurance benefits, or compensation for criminal injuries or wrongful conviction.

How long before I get my money back?

Reimbursement will be made in line with the following published time limits:

  • Up to 31 December 2018 – within 20 working days
  • From 1 January 2019 to 31 December 2020 – within 15 working days
  • From 1 January 2021 to 31 December 2023 – within 10 working days
  • From 1 January 2024 – within 7 working days
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