What is FSCS?
- It is s the UK’s statutory Deposit insurance and investors compensation scheme.
- It protects deposits, insurance policies, insurance broking, investments, mortgages and mortgage arrangements.
- This scheme was set up under the Financial Services and Markets Act 2000.
- Annual budget for 2019/20 financial year sis £79.6M.
What is covered?
- Up to £85,000 with single institution or institutions within the same group.
- If you have a joint account, the protection deposit limit is £170,000.
- Protection of £1,000,000 for up to six months from the date the account was first created.
- Particularly very useful when receive unusually high balance in your account due to sale of property.
- Temporary high balance cover is only available to individuals and not to the businesses.
What is not covered?
- The bank or building society is not authorised by Financial Conduct Authority.
- The bank or building society is still in business. Need to complain to them first.
- The bank and building society was based in European Economic Area.
How to make a claim?
- When bank or business society goes bust, the FSCS will automatically pay out depositors.
- Customers of other types of financial services may have to contact the FSCS directly.
How long an FSCS claim take?
- Normally you get your money back in seven days.
- More complex cases can take up to fifteen days.
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