Financial Services Compensation Scheme (FSCS)

The Financial Services Compensation Scheme (FSCS) is a safety net in the UK that protects customers if financial services firms fail. If a bank, insurance company, or other financial institutions go under, the FSCS compensates eligible customers for their lost money, up to certain limits. For example, it protects up to £85,000 for deposits in banks and building societies. This scheme helps maintain public confidence in financial institutions by ensuring that consumers don't lose their savings and investments if a company becomes insolvent.