What is the Financial Services Compensation Scheme (FSCS)?
The Financial Services Compensation Scheme (FSCS) is an independent service set up by the government to help protect customers. If the financial services company you use goes out of business and can't pay your claims, the FSCS can step in to provide compensation.
For more information you can visit the FSCS website or download the FSCS Guide [PDF]. If you have eligible deposits you can download our FSCS information sheet [PDF].
Who is covered by the FSCS?
We are covered by FSCS and therefore, so are our customers. Some exclusions apply, find out more information on the FSCS information sheet [PDF] or read more about eligibility rules on the FSCS website.
Look out for the FSCS logo, and use the FSCS protection checkers on the FSCS website to check which other providers are covered.
How much compensation will I get?
There are rules and limitations on the amount of compensation the FSCS can pay out, and these are set by the UK regulators, the Financial Conduct Authority and the Prudential Regulation Authority. For more information about What is covered visit the FSCS website.
If you have only one Skipton savings account
If you have only one account with us, the FSCS deposit protection limit is £85,000 for eligible deposits.
If you have more than one Skipton savings account
The maximum amount of compensation you could get for eligible deposits is still £85,000. The limits are confined to individual banking institutions and groups, so even if the total of all your different accounts added up to more, the FSCS would not compensate you above £85,000.
If you have a joint savings account
For joint accounts each named holder is treated individually, so where an account is held by two people, the maximum amount that could be claimed for eligible deposits is £85,000 per person, a total of £170,000.
If you have more than one savings account, but with different banks and building societies
The level of protection you have will depend on which banks and building societies your accounts are with.
The FSCS can pay out a maximum of £85,000 per person subject to being eligible, for each ‘authorised institution’ or banking group.
But, if you have money in multiple accounts with financial institutions that are part of the same banking group (and share a banking licence), they’ll be treated as one institution and so the limit would be £85,000 across the group. So, if you had £80,000 with one institution in the group and £10,000 with another, for a total of £90,000, £5,000 wouldn’t be covered by the FSCS.
To find out if you have accounts with banks and building societies that are part of the same banking group check the FSCS website.
Are there ever any higher compensation limits for savings?
Yes. If for example you have a ‘temporary high balance’ (e.g. house sale, redundancy, inheritance), the FSCS may protect up to £1 million for up to six months from the date the account was first credited. Visit the FSCS website for more information about What is covered and other claims limits.
What else does the FSCS cover?
The scheme covers several different kinds of UK-regulated financial services, if you are a Skipton Building Society customer, this includes:
- Savings accounts
- Funeral plans
- Pension advice
View the FSCS website for a full list of what the FSCS covers and their claim limits.
How do I claim through the FSCS?
In the event that your provider was to fail, you can contact the FSCS by phone, email or directly through their website to start the process. It’s completely free and they’ll tell you straight away if you’re eligible when you claim online. If your situation has caused immediate financial hardship, the FSCS say they’ll try to deal with your claim as a priority.
Remember it’s free to claim any compensation directly with the FSCS. If you use a claims management company to make a claim, they may charge a fee.