Deposit Limits
Deposits made by private individuals and small businesses to any authorised firms are protected by the FSCS. These can be referred to as "retail deposits". Slightly different limits and rules apply if you have a claim against a deposit firm that was declared in default before the FSCS became operational (1 December 2001). Please contact us for more details.
From 30 June 2009, the deposit compensation limit is the higher of £50,000 or €50,000*. In the event of default, the Euro amount will be calculated by reference to the currency exchange rate on the day of default.
Depositors may still receive a share of their savings above this limit following any distribution of assets as part of the insolvency process for a failed bank. This would be a matter for the insolvency practitioner to determine and any recovery would, by necessity, vary according to the circumstances of the specific failure.
If you think that you have a claim but have not heard from us, or if you are worried about what is happening with your claim, please contact us.
More about Bank and Building Society Compensation Limits
The maximum level of compensation for bank and building society claims is the higher of £50,000 or €50,000* per person per firm (for claims against firms declared in default from 30 June 2009).
The FSA introduced a temporary rule on 27 November 2008 relating to the merger of building societies, which is effective from 1 December 2008. A merged building society will be able to keep separate compensation limits for customers who already had accounts with both building societies before a merger. As a result, those customers do not lose any protection and retain the FSCS limit of £50,000 for accounts with each predecessor business. Depositors who join the merged building society will only be entitled to the usual FSCS coverage for deposits of £50,000, regardless of whether they open accounts with each of the two merged businesses. The new rule will operate until 30 December 2010. Further information can be found on the FSA's website.
This rule change affects mergers between building societies only, not mergers between two banks, or between a bank and a building society. This is because the laws that affect building societies and banks are different. If two banks merge they have the ability, should they wish, to retain separate authorisations and separate coverage under the FSCS. This is not the case for building societies.
Amounts owed (for example loans, mortgage or credit card debts) are taken into account before any compensation is paid.
More about Credit Union Compensation Limits
The maximum level of compensation for credit union claims is the higher of £50,000 or €50,000* per person per firm (for claims against firms declared in default from 30 June 2009).
* For claims against firms declared in default between 7 October 2008 and 29 June 2009, the maximum level of compensation is £50,000 (100% of the first £50,000). For claims against firms declared in default between 1 October 2007 and 6 October 2008, the maximum level of compensation is £35,000 (100% of the first £35,000). For claims against firms declared in default before 1 October 2007, the maximum level of compensation is £31,700 (100% of the first £2,000 and 90% of the next £33,000).