Accepting Deposits

This Sub-scheme covers claims made against failed deposit-taking firms, for example banks, building societies and credit unions.

FSCS is triggered when a firm authorised to accept deposits by the Prudential Regulation Authority (PRA) goes out of business, for example if the firm goes into administration or liquidation, and is unable to repay its depositors. FSCS can also be involved if the PRA considers that an authorised firm is unable, or likely to be unable, to repay its depositors.

Once we are satisfied that a firm is unable, or likely to be unable, to pay claims against it, we declare the firm in default. A declaration of default opens the way for the firm's customers to make a claim for compensation to us.

If a firm is in administration or liquidation we will work closely with the administrator or liquidator to verify eligible claims. With the failure of a small firm, where no liquidator or administrator is appointed, we will work with the firm's officials to obtain records, both paper and electronic, to enable us to deal with claims against the firm.



Topping up


Payout arrangements

About the FSCS

Click here to find out more about the FSCS, its role, its operations and its personnel.


This section contains all our published collateral, from consumer guides, to policy statements and factsheets.


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 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.
  • 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.
  • FSA

    Financial Services Authority, was previously the UK's regulator for the finance industry. It was replaced by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) on 1 April 2013.