How safe are my savings? (2024)

Are my savings safe?

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 atwww.fscs.org.uk/. You can also visit our Financial Services Compensation Scheme page for more details.

What is the Financial Services Compensation Scheme?

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. It’s been around for a while, but has been strengthened since the financial crisis of 2007.

The FSCS is a last resort when a financial services company isn’t able to pay its own customers what they’re owed. If you have a complaint you should always try to resolve it with the company first, and then with the Financial Ombudsman.

Who can claim compensation from the FSCS?

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.

How much compensation will the scheme pay?

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 atwww.fscs.org.uk. You can also visit our Financial Services Compensation Scheme page for more details.

What’s covered by the scheme?

The FSCS covers:

Money in savings accounts, cash ISAs and current accounts that are regulated in the UK.
Banks, building societies and credit unions regulated in the UK.

Not all European-based banks are regulated in the UK:a few use a passport scheme, which allows them to be regulated in their home country. However, these banks are usually covered by a European guarantee scheme that compensates you for 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.

What counts as “one bank”?

Each separate institution registered with the FCA has its own £85,000 limit on compensation. But not all banks have separate registrations or separate limits.

If two banks are owned by the same parent company, you may only have one compensation limit for all your savings with both banks. The FCA publishes a list of which companies own which banks at https://www.fca.org.uk/consumers/deposit-savings-protection

If you have more than £85,000 in savings, you should consider splitting it between separate institutions.

Compensation for mortgages, investments and insurance

The FSCS also covers mortgages, insurance and investments, but these products have different compensation limits. You get a separate limit for each type of product – so this is in addition to your allowance for any money you’ve lost from bank accounts.

These limits are:

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

Joint accounts

If you lose money that was in a joint account, you’re each covered up to your personal claim limit of £85,000. This means there’s a total of £170,000 protection for the money in that account – but your personal limits are unchanged.

For example, if you also have a current account and savings account in your sole name with the same bank, you’re still only covered for a total of £85,000 across all three accounts.

Offshore savings

The FSCS applies to companies regulated by the Financial Conduct Authority (FCA). If your savings are held offshore, they are usually not regulated by the FCA and so won't be covered by the FSCS. 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.