FSCS

The Financial Services Compensation Scheme (FSCS) is a UK government-backed service that protects customers if financial institutions fail. If your bank, building society, or insurance company goes bankrupt, the FSCS can compensate you for your losses, up to certain limits. For example, it covers up to £85,000 per person per bank for deposits and up to £1.5 million for certain investments. The scheme aims to ensure that customers do not lose their savings or investments due to a financial firm's insolvency, providing peace of mind and maintaining confidence in the financial system.