2. Q & As for Deposit Firms

2.1. My money is in a joint account, how would the FSCS pay compensation if you failed?

The FSCS limit for deposits increased on 31 December 2010.

Each depositor is covered up to the FSCS limit per person per authorised firm, regardless of how many accounts they hold or whether they are a single or joint account holder. In the case of a joint account, the FSCS will assume that the money in that account is split equally between the account holders, unless evidence shows otherwise.

This means that each account holder in a joint account would be eligible for compensation up to £85,000, a total of £170,000 for the account.

2.2. Will the FSCS compensate for any interest earned on my account?

Yes, interest will be calculated according to the type of account you hold. For further details please refer the customer to the FSCS website - www.fscs.org.uk.

2.3. What is the position if I have multiple accounts with you? Or if I have accounts with different banks that share your authorisation?

If you hold multiple accounts with us you need to be aware the FSCS would pay compensation per person, up to the compensation limit for each individually authorised firm, not per account. The limit increased on 31 December 2010 to £85,000.

Many deposit-taking firms operate using different trading names which are not separately authorised entities. You may find that you have deposits with different “banks” but they are actually linked and operate under one single authorisation. This would mean that you are only covered once up to the compensation limit.

If you have a question about how a bank or building society is authorised, please check the list on the PRA's website or contact the PRA on 020 7601 4878.

2.4. What happens if I owe money to you and you fail?

From January 2011 compensation will be paid to consumers based on amounts held in their cash accounts regardless of the amounts owed to us (for example, loans, mortgage or credit card debts). This does not mean that consumers do not have to re-pay amounts owed to us if we were to fail. Any outstanding amounts owed to us would be collected by the liquidator.

2.5. Is a charity covered if the bank or building society it holds money with fails?

FSCS protects private individuals and small to large businesses including charities up to the deposit limit of £85,000. 

2.6. Are offshore deposits covered?

The FSCS does not cover deposits outside the European Economic Area (EEA), or in the Channel Islands or Isle of Man.

 *From 3 July 2015, the FSCS will provide a £1 million protection limit for temporary high balances held with your bank, building society or credit union if it fails. Read our Q&As about temporary high balances for more information.


The FCA

The Financial Conduct Authority website includes a searchable database of all firms authorised and regulated by the FCA and the Prudential Regulation Authority (PRA).

The FOS

The Financial Ombudsman Service is the official independent expert in settling complaints between consumers and financial businesses

Jargon Buster

  • Authorised firm

    a company, unincorporated body, partnership or individual permitted to carry out a regulated activity by the FCA or the PRA. This term includes a mutual (unincorporated) organisation, for example a friendly society.
  • Credit union

    a financial co-operative which is owned and controlled by its members.
  • Deposits

    money placed in a bank or similar institution to earn interest or for safe-keeping.
  • EEA

    European Economic Area.
  • Eligible

    qualifying for compensation under Scheme rules.