How deposit protection works
If a UK-authorised bank, building society or credit union fails and cannot pay back the money you hold with it, the Financial Services Compensation Scheme (FSCS) compensates you. You do not need to claim, because FSCS pays automatically. How your business is set up decides how many limits you get, and brands that share a banking licence count as one firm.
Ring-fenced banks
Since 1 January 2019 the largest UK banking groups have had to keep their retail banking in a separate ring-fenced bank, to protect it from problems elsewhere in the group. Ring-fencing does not change your FSCS limit.
Keep your cash protected
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Check your banks are protected
Look for the FSCS Protected badge, or use the FSCS protection checker, to confirm each bank, building society or credit union is covered.
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Add up what you hold with each firm
Count every account your business holds with brands that share a banking licence. Only the total up to the limit is protected.
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Spread larger balances
If your business holds more than the limit with one firm, consider spreading the excess across firms with separate licences.
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Keep working capital apart
Hold money for payroll, rent and suppliers somewhere other than your long-term reserves, so one failure does not stop you trading while FSCS pays out.
Legal basis
Primary legislation and key regulations