Financial Services Compensation Scheme

The Financial Services Compensation Scheme (FSCS) is a safety net in the UK designed to protect customers if financial institutions, like banks or insurance companies, fail. If a firm goes bankrupt or is unable to pay claims, the FSCS can compensate customers up to certain limits. For example, if a bank fails, you could get back up to £85,000 of your deposits. This scheme helps maintain trust in the financial system, ensuring that individuals and businesses aren’t left without support if something goes wrong with their financial service provider.