We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors - including most individuals and small businesses - are covered by the scheme.
In respect of deposits, an eligible depositor is entitled to claim up to £85,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £85,000 each (making a total of £170,000). The £85,000 limit relates to the combined amount in all the eligible depositor's accounts with the bank, including their share of any joint account, and not to each separate account.
For further information about the scheme (including the amounts covered and eligibility to claim) please ask at your local branch, refer to the FSCS website www.FSCS.org.uk or call 0800 678 1100 or 020 7741 4100.
This page aims to give you more information about the scheme and how it may affect your business.
The FSA has set out certain rules which must be applied to determine eligibility under the Scheme. Those rules can be found in the FSA's COMP Handbook.
Guidance on FSCS Eligibility for Business Depositors
The guidance on eligibility for depositors given below is based on the Bank's understanding of the FSA handbook. This may be subject to change without notice. For full guidance on the rules you should refer to the FSA's COMP Handbook or the FSCS.
Eligible Business Depositors under FSCS
Sole Traders - A person trading as a sole trader has no separate legal personalty when trading in that capacity and therefore cannot make a separate claim on FSCS. Therefore if you are a Sole Trader, the £85,000 limit relates to the combined amount in all your accounts [personal and business] with the bank, including your share of any joint account, and not to each separate account.
Partnerships - With the exception of Limited Liability Partnerships which meet the definition of a 'large company' [see definition below], all other partnerships are eligible as depositors under FSCS.
Under the current rules certain depositors, including the following depositors are not eligible for compensation under the FSCS:
1. Large companies
You should refer to Sections 382 and 383 of the Companies Act 2006 for guidance. By way of summary only:-
A 'large' company [which includes bodies corporate such as Limited Liability Partnerships] must satisfy two or more of the following requirements in the last financial year:
- Turnover - more than £6.5 million
- Balance sheet total - more than £3.26 million
- Number of employees - more than 50
Section 383 will apply where a company is part of a group.
2. Large mutual/unincorporated associations
A 'large' mutual/unincorporated association will have net assets of more than £1.4 million.
3. Overseas financial services associations
4. Supranational institutions, governments, and central administrative authorities
5. Provincial, regional, local and municipal authorities
We will write to you to advise you if we have determined that you are not eligible under the FSCS. If your account is not eligible for compensation under the FSCS and the Bank becomes insolvent you will still be able to make a claim as a creditor under the relevant insolvency legislation.FSCS Q&As - general queries
FSCS Q&As - deposit products
These are appropriate for customers with savings products and current accounts with credit balances.