How your money is protected at a bank or e-money provider

Katerina Galkina · EN · 07/10/2026

Identify who actually holds your money

A banking-style app does not tell you how its balance is protected. Find the legal entity providing your particular product in the agreement and check it using the FCA’s guidance and register ↗. One brand may offer services through several entities. Another customer’s account or an old app review cannot establish the terms of your current contract.

Keep the entity’s name, registration details, protection information and a statement. Establish whether you hold a bank deposit, electronic money or investments: each needs a different assessment.

Understand FSCS deposit protection

For eligible deposits when an eligible UK bank, building society or credit union fails after 30 November 2025, the standard limit is £120,000 per person per authorised institution. Accounts and brands sharing a banking licence are added together. Check the institution with the FSCS ↗ before spreading a large balance between brands.

Certain temporary high balances arising from qualifying life events can receive additional protection, subject to conditions and a limited period. Retain evidence of where the money came from. A large incoming transfer is not automatically a qualifying temporary high balance.

Understand safeguarding

The FCA explains ↗ that money at non-bank payment providers does not receive the same FSCS protection. Electronic money institutions and authorised payment institutions must safeguard customer funds, through segregation or an appropriate guarantee arrangement. Small payment institutions are not required to safeguard funds.

That distinction matters when choosing where to receive wages or keep an emergency reserve. Ask how customers recover their money if the provider becomes insolvent and where administrator details would be published. FCA regulation alone should not be treated as a promise of an immediate payout.

Compare the services before transferring

Make a short table covering legal entity, product type, protection, your total balance under the same licence, fees and customer support. Also check withdrawal times and whether you can obtain statements without relying on the app.

For daily spending, assess payment convenience. For a substantial reserve, assess protection and access separately. FSCS protection is not an investment return guarantee and does not compensate for ordinary market losses. Never move money to a supposed “protected account” following an incoming call: verify the claim and account details independently through the organisation’s official website.