FSCS protection – your safety net for savings and investments

Ever wonder what happens if the bank or investment firm you trust goes bust? In the UK, the Financial Services Compensation Scheme (FSCS) steps in to protect you. It’s a government‑backed safety net that covers most retail financial products, so you don’t lose everything when a firm fails.

What the FSCS covers

FSCS protection applies to a range of products:

• Deposits: Up to £85,000 per person, per authorised bank or building society. If you have joint accounts, the limit doubles to £170,000.
• Investments: Up to £85,000 for each investment firm, covering shares, funds, bonds, and more.
• Insurance policies: Up to £90,000 for single claims, with a total limit of £30,000 for personal injury claims.
• Pensions: If a pension provider fails, FSFS can pay up to 100% of your pension, subject to a £30,000 cap for defined contribution plans.

Not every product is covered. For example, certain high‑risk investments, crypto‑assets, or products sold by unregulated firms fall outside the scheme. Always check the provider’s authorisation on the FCA register to be sure.

How to make a claim

If your firm is declared in default, the first step is to stay calm and wait for official communication. FSCS will usually contact you directly with details on how to claim.

Here’s a quick checklist:

1. Gather your documents – account statements, policy letters, and proof of identity.
2. Visit the FSCS website and fill out the appropriate claim form. The forms are straightforward and ask for basic info about the failed firm and your holdings.
3. Submit the form online or by post. FSCS aims to pay most claims within 30 days, but complex cases may take longer.
4. Keep an eye on updates. FSCS will let you know once they’ve processed your claim and when you’ll receive the payout.

Remember, you don’t need a lawyer to claim – the process is designed to be user‑friendly. If you’re unsure about anything, the FSCS helpline is a good place to get help.

It’s also smart to spread your money across different authorised firms if you have large sums. By doing so, you can stay within the £85,000 limit per firm and maximise protection.

In short, FSCS protection gives you peace of mind that your hard‑earned money won’t vanish overnight. Knowing the limits, what’s covered, and how to claim helps you make informed choices about where to keep your cash and investments.

Want to double‑check if a firm is covered? Just head to the FCA register, search the firm’s name, and look for the FSCS logo. If you see it, you’re in safe hands.

Keep these tips in mind, and you’ll feel confident that your finances have a solid backup plan, no matter what the market throws at you.