The Financial Services Compensation Scheme (FSCS)

published 14 March 2023

The Financial Services Compensation Scheme (FSCS) protects savers and investors if a financial institution fails. Set up by the government, the institution is independent and free to use and is designed as a safety net to protect users of banks, building societies and investment accounts.

the FSCS will pay a certain level of compensation per person per financial institution to cover any losses if a bank, building society, pension provider or investment broker goes bust. If you have substantial savings or investments, you may want to set up accounts with multiple financial institutions. If you do plan on splitting your savings, be aware that many banks, building societies and pension providers are part of a suite of financial brands owned by a larger organization, so check you are genuinely saving with two separate institutions.

For more details, including how to check your financial product's eligibility and how to make a claim, go to the FSCS website.