How your cash is protected: changes to the Financial Services Compensation Scheme

Changes to the Financial Services Compensation Scheme


MoneyPlus Features Team

27th August 2015 at 3:14pm

The Financial Services Compensation Scheme is the UK Government scheme which protects customers of financial services firms up to certain limits. The limit for deposits is changing from 1 January 2016. Here’s what you need to know.

What’s changing?

The protection limit for money held in banks, building societies or credit unions is reducing from £85,000 to £75,000 on 1 January 2016.

What this means is that if your bank, building society or credit union were to collapse, the Financial Services Compensation Scheme (FSCS) will protect money you have with them up to the new limit. It’s important to be aware that the protection limit is for each banking group, not just individual banks or building societies.

You can read more about the scheme here

What this means for you

  •  ISA, SIPP, AMPP and Personal Portfolio account holders are among those who could be affected.
  • If you have deposits* of more than £75,000 with the banks with which Standard Life places money, you may not be fully protected after 1 January 2016 and may need to take action to ensure you remain fully covered by the scheme.
  • We use HSBC Bank plc, Standard Chartered Bank and the Royal Bank of Canada to hold deposits. Any money you have with Standard Life will be added to money you have in other accounts with these banks to calculate compensation should one of them fail.
  • If your total deposits are less than £75,000 with these banks, you won’t be affected.

*Some deposits are not eligible – you can read about these on the FSCS website:

Protection for those with temporary high balances

The good news is that if you have a temporary high balance, for example from a house sale, inheritance, insurance or redundancy payment, you may be protected up to a much higher limit for up to six months after you receive the money.

This gives those with a higher than usual balance in their bank, building society or credit union a welcome additional layer of protection. This change came into effect on 3 July 2015.

How to find out more

If you have any questions about the change in the compensation limit, you can get in touch with the Financial Services Compensation Scheme (FSCS):
FSCS, 10th Floor Beaufort House,
15 St Botolph Street, London,
Tel: 0800 678 1100

Join the conversation

Join the conversation and follow us on twitter @StandardLifeUK and Facebook and share any questions you have about the changes to the Financial Services Compensation Scheme.