How safe are my savings?

Let’s look at the details

  • The Financial Services Compensation Scheme (FSCS) pays compensation to you if you lose money when a bank or other financial services provider goes out of business. The scheme has existed for some time and gained strength following the financial crisis of 2007.

    The Financial Services Compensation Scheme (FSCS) intervenes as a last resort to compensate customers when a financial services company fails to fulfil its financial obligations. If you have a complaint you should always try to resolve it with the company first, and then with the Financial Ombudsman.

  • When a financial institution fails, the FSCS compensates individual account holders and small businesses with a turnover of less than a certain limit. Larger businesses can’t claim.

  • Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). For more information about the compensation provided by the FSCS, refer to the FSCS website at www.fscs.org.uk. You can also visit our Financial Services Compensation Scheme page for more details.

  • The FSCS actively protects the money in UK-regulated savings accounts, cash ISAs, and current accounts. It covers banks, building societies, and credit unions regulated in the UK.

    Not all banks based in Europe fall under UK regulation. A few operate under a passport scheme that allows regulation in their home country. Yet, these banks typically fall under a European guarantee scheme that offers compensation up to €100,000.

    Lloyds Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority: all our savings accounts, current accounts and ISAs are covered by the FSCS.

  • Each separate institution registered with the FCA has its own £120,000 limit on compensation. But not all banks have separate registrations or separate limits.

    The FCA publishes a list of which companies own which banks, available on the FCA website.

    If you have more than £120,000 in savings, you should consider splitting it between separate institutions.

  • If you lose money that was in a joint account, you’re each covered up to your personal claim limit of £120,000. This means there’s a total of £240,000 protection for the money in that account – but your personal limits are unchanged.

    If you have a current and savings account with one bank, the total coverage is £120,000 for all accounts combined.

  • The FSCS applies to companies regulated by the Financial Conduct Authority (FCA). The FCA usually does not regulate savings held offshore, and so the FSCS won’t cover them. For example, savings held in the Isle of Man or outside Europe are unlikely to be covered by the scheme.

    Ask your bank where your savings are held and if they are covered by the scheme.

  • The FSCS also covers mortgages, insurance and investments, but these products have different compensation limits. Each product type has its own limit, separate from your bank account compensation.

    These limits are:

    • Mortgage advice and arrangement services: £50,000
    • Investments: £85,000
    • Compulsory general insurance (for example third-party motor insurance): 100% of the claim
    • Most other insurance products (for example life cover, home insurance, health insurance): 90% of the claim
    • Insurance advice and arrangement services: 90% of the claim.

Protecting your money

Protecting your money

The Financial Services Compensation Scheme (FSCS) protects up to £120,000 of the eligible money you hold with us.

More about the FSCS

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