Protection & safety · Jurisdiction UK

FSCS protection in the United Kingdom

The FSCS can compensate in the United Kingdom if an authorised firm fails. This is UK law, not the German deposit guarantee. Finmon pays nothing out.

In more detail

FSCS is a UK statutory compensation scheme, not an EU guarantee fund and not an EdB offshoot. Deposits with UK-authorised banks, building societies and credit unions sit under the deposit limit. Several brands that share a banking licence count as one firm. Temporary high balances (for example a house sale) can have time-limited extra cover. Amount and conditions are on fscs.org.uk, not in Finmon.

Background

FSCS also covers other classes (including certain investments, insurance, pensions) with their own limits. That is not the deposit limit and not “German-style deposit guarantee in sterling”. Market losses on securities are not a firm failure. As at 2026: £120,000 snapshot for deposits plus a review date; Finmon is not a payout body. Treating FSCS as the same thing as German deposit protection would be wrong.

An example

You hold £90,000 in a UK current account at a PRA-authorised bank. Educational UK snapshot: within £120,000 per person per authorised firm (as at 2026, check the limit). That does not replace German EdB cover for a German account.

A common misconception

FSCS is German deposit insurance in sterling with a permanent £85,000 badge.

FSCS is a UK compensation scheme. The deposit snapshot has been £120,000 per person per firm since 1 Dec 2025 (previously £85,000). Finmon does not pay out.

Source: Financial Services Compensation Scheme (FSCS). Last reviewed: 2026-10-26. Editorially reviewed on 2026-10-26. Next review 2027-10-26. Version 0.2.0. Finmon explains. It does not advise. Not investment, tax or legal advice.