The Financial Services Compensation Scheme can pay out compensation if you end up out of pocket because your bank/financial services provider goes bust or if you lose money because of poor advice from a financial adviser who has since gone out of business.
The Financial Services Compensation scheme (FSCS) is a safety net for customers of authorised financial services firms.
The FSCS is the UK's compensation fund of last resort for customers. It may pay compensation if a firm is unable, or likely to be unable, to pay claims against it. This is usually because the firm has stopped trading or has been declared in default.
If you are worried about the safety of your money, the deposit compensation limit has been raised from £50,000 to £85,000 per person – in other words up to £85,000 of your personal savings is now guaranteed (or protected) should your bank, building society or credit union go bust.
The FCA lays out five steps to making sure your money is covered if a bank, building society or credit union goes bust, available at this link.
For detailed information of how to claim under the FSCS go to the MoneyHelper or to the Financial Conduct Authority (FCA).
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