The FSCS is funded by the financial services industry and is free to consumers. It is the body which gives you automatic protection of your savings up to £85,000 if your bank, building society or credit union goes out of business – and you’ll normally get your money back within seven days. It is there to protect your savings.
Only financial services firms that have been authorised by the Financial Conduct Authority (FCA) or the Prudential Regulations Authority (PRA) to do business in the UK are covered. So it’s always worth checking that the firm has an FCA or PRA authorisation number.
A deposit is money in accounts like current and savings accounts, including Individual Savings Accounts (ISAs). Whether you’re an individual or a company, FSCS protects these deposits should your bank building society or credit union fail.
FSCS protects deposits up to £85,000 per person or company, per authorised firm.
FSCS also protects certain types of balances held by individuals above £85,000. These ‘temporary high balances’ are protected up to £1,000,000 for a period of six months. They are exceptional and short-lived deposits which result from certain major life events.
To make a claim, visit www.fscs.org.uk where you’ll find all the information you need. You can either complete an online claim service form or call to ask for a paper application form.
Once all the relevant paperwork is received, your claim will be investigated and you’ll be kept up-to-date on progress. The investigation can take up to six months and occasionally can take longer.
At the end of the investigation, a decision will be made as to whether you have a valid claim and if the rules allow the FSCS to pay you compensation. The FSCS will be in touch to let you know whether your claim has been successful or not.