Charities

Can a charity claim compensation from FSCS?

Yes — charities can claim FSCS compensation if they meet eligibility rules based on their legal structure. Eligibility is not based on being a charity, but on how the organisation is set up and how its accounts are held.

A charity is eligible for FSCS compensation if:

it held deposits with a UK-authorised bank, building society or credit union.
the firm has failed and cannot return the money.
the charity’s legal structure meets eligibility rules in the PRA Depositor Protection Rules.

Key facts

FSCS protects eligible charity deposits up to £120,000 per bank or banking group.
Charitable status alone does not determine eligibility.
Eligibility depends on the charity’s legal structure.
All accounts held with the same bank are combined (aggregated).
Some trusts may qualify for separate protection per beneficiary.

Will my charity be eligible?

Your charity may be eligible if:

It held money with a UK-authorised bank, building society or credit union.
The firm has failed and cannot return the money.
The charity’s legal structure meets FSCS eligibility rules.

How FSCS assesses charity claims

Eligibility is based on the charity’s legal structure, not its charitable status.
We assess the organisation in the same way as other customers, using rules set out in the PRA Rulebook.

How FSCS treats different charity structures

Charities in England and Wales are usually set up as one of the following:

Charitable incorporated organisation (CIO).
Charitable company (limited by guarantee).
Unincorporated association (UA, e.g. clubs).
Trust.

FSCS treats the legal structure as the claimant and applies eligibility rules directly to it.

How much can a charity claim?

Eligible charity deposits are protected up to:

£120,000 per charity, per bank or banking group.

Important

All accounts held with the same bank or banking group are added together (aggregated).
Banks operating under the same licence are treated as one firm.

How FSCS treats charities structured as trusts

Treatment depends on the type of trust:

Standard trust arrangements

FSCS assesses eligibility based on the trust’s legal structure and terms.

Bare trusts (special case)

FSCS may “look through” the account holder.
Each eligible beneficiary may be treated separately.
Each beneficiary may be protected up to £120,000.

What rules does FSCS follow?

FSCS determines eligibility using the PRA Depositor Protection Rules in the PRA Rulebook. These rules define which deposits are eligible and how compensation is calculated.

When can charities claim FSCS compensation?

Charities can claim if the failed firm held their deposits and their legal structure meets FSCS eligibility rules.

Does being a charity make me eligible?

No. Charitable status alone does not determine eligibility. FSCS looks at your organisation’s legal structure.

How much protection does a charity get?

Eligible deposits are protected up to £120,000 per bank or banking group.

Are charity accounts treated separately?

No. All accounts with the same bank or banking group are usually combined when calculating compensation.

Can trust beneficiaries be protected separately?

In some cases (such as bare trusts), each eligible beneficiary may receive separate protection.

Legal Structure	Who the FSCS generally considers as claimant	FSCS compensation limit
CIO/ Charitable company/ UA	CIO/ Charitable company/ UA	£120,000 applied to the CIO/ Charitable company/ UA across all accounts with the same bank or banks within the same banking group
Trust	If funds are held under bare trust = the Beneficiary	Where funds are held on a bare trust: £120,000 is applied to each eligible beneficiary entitled to the funds under the bare trust arrangement. Accounts to which the beneficiary is entitled to that are held with the same bank or a bank that is part of the same banking group are aggregated and the total amount protected is up to £120,000
Trust	If funds are held under a non-bare trust = the Trust	If funds are held under non-bare trust: £120,000 is applied to the Trust per authorised institution. The Trust’s accounts that are held with the same bank or another in the same banking group are aggregated. The total amount to which the Trust is protected is up to £120,000. Trustees have a separate claim for each separate trust that they are a trustee of.

Please note that pension trustees are an exception to the general Trust rules as set out above and are treated differently depending on the type of pension.

When the podcast below was recorded, the deposit limit was £85,000. On 1 December 2025 it was raised to £120,000. See our New Deposit Limit page for details.

Note
This page does not constitute legal advice but seeks to provide general information only.

The FSCS is unable to confirm eligibility of specific deposits prior to the point that the deposit taker holding the funds fails. For confirmation, contact the deposit taker holding the funds, or seek legal advice.