Does FSCS protect upto 85,000 per each account or total per branch?

james_uk

Hi, I was just wondering how the FSCS protection works, i see it says it protects up to £85,000 but i am wondering if this is per each account in the same branch or is it the total between the accounts?

I am only with 1 branch, but if i have got the normal current account then maybe an isa and one that’s an online savings account, would each be protected up to £85,000 or would it be the total of all?

If it is the total of all and i had more than £85,000 between them all, would the best action be to open savings accounts with a different branch and would that then be protected separately?

Regards

James

grumbler

Neither. It's per a financial institution.

>> Are my savings safe?

Read about the savings protection scheme

RG2015

It needs to be a different bank. Branches are irrelevant.

You need to ensure though that the different bank is not a sister bank operating under the same licence.

Googling it should give you all the answers you need.

https://www.money.co.uk/guides/which-banks-count-as-one-under-the-financial-services-compensation-scheme-fscs.htm#:~:text=Bank of Scotland, Aviva, Halifax,Bank, Yorkshire Bank, Virgin Money

Brie

As I understand it you have to check on related banks/institutions.  So Natwest and RBS are essentially one bank.  So a total of £85k for them.  Barclays is a different bank so £85k there.  

And that's per person.  So if you and the OH have a joint account that can have £170k.

RG2015

Brie said:

As I understand it you have to check on related banks/institutions.  So Natwest and RBS are essentially one bank.  So a total of £85k for them.  Barclays is a different bank so £85k there.  

And that's per person.  So if you and the OH have a joint account that can have £170k.

No, NatWest and RBS have different licences so it is £85k each. See my link on the post above.

On the other hand, Clydesdale, Yorkshire bank and Virgin Money have the same licence so it is £85k over all three.

PS: Good point on the joint accounts giving double protection.

james_uk

Thats brilliant information, thanks for clearing that up.

phillw

RG2015 said:
PS: Good point on the joint accounts giving double protection.

Well it doesn't entirely, each person gets £85,000 protection in an institution (per banking license) whether it's in two people with individual accounts or one joint account. It just saves you leveling two individual accounts up, but the level of protection is the same.

RG2015

phillw said:

RG2015 said:
PS: Good point on the joint accounts giving double protection.

Well it doesn't entirely, each person gets £85,000 protection in an institution (per banking license) whether it's in two people with individual accounts or one joint account. It just saves you leveling two individual accounts up, but the level of protection is the same.

Okay. Fair point.

Just for clarification for the OP, the FCA say the following.

The Financial Services Compensation Scheme (FSCS) can pay compensation if a bank, building society or credit union is unable to pay claims against it.

The deposit protection limit is:

• up to £85,000 per eligible person, per bank, building society or credit union
• up to £170,000 for joint accounts

https://www.fca.org.uk/consumers/deposit-savings-protection

eskbanker

RG2015 said:

phillw said:

RG2015 said:
PS: Good point on the joint accounts giving double protection.

Well it doesn't entirely, each person gets £85,000 protection in an institution (per banking license) whether it's in two people with individual accounts or one joint account. It just saves you leveling two individual accounts up, but the level of protection is the same.

Okay. Fair point.

Just for clarification for the OP, the FCA say the following.

The Financial Services Compensation Scheme (FSCS) can pay compensation if a bank, building society or credit union is unable to pay claims against it.

The deposit protection limit is:

• up to £85,000 per eligible person, per bank, building society or credit union
• up to £170,000 for joint accounts

https://www.fca.org.uk/consumers/deposit-savings-protection

....which begs the question of FSCS protection for joint accounts shared by more than two people!  The question comes up on here from time to time and AIUI there are various accounts available for >2 holders, so presumably the aggregate FSCS coverage is actually n * £85K rather than the £170K figure implied by the FCA wording above.