9 Feb 2018

Upgrading Explained: What is FSCS protection?

We’re bringing the Monzo Beta to an end, meaning prepaid cards will stop working on April 4th. If you want to keep using Monzo, you’ll need to upgrade your account before that.

One of the benefits of upgrading is that the money in your account will be protected by the Financial Services Compensation Scheme (FSCS). But what exactly is the FSCS? And what does this mean for your money?

The short answer

Up to £85,000 of the money in your account is protected by the government. If Monzo or any other bank or building society should fail, it means you won’t be left out of pocket.

The long answer

The FSCS is an independent fund set up by the government to help protect people’s money.

If a bank, building society or other financial services firm goes bust, the FSCS will protect up to £85,000 of your money. It means you’ll get any money in your account back within a week if your bank goes out of business.

Upgraded Monzo accounts are covered by the FSCS, meaning up to £85,000 of the money in your Monzo account is protected.

This is because Monzo is a regulated bank, and upgraded accounts are UK bank accounts. The FSCS covers companies that have been authorised by the UK regulators, the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA).

The protection should give you extra peace of mind that your money’s safe, if anything should ever happen to Monzo.

You can find out more about how your money is protected on the FSCS website.

Please let us know if you found this useful, and if you have any other questions you’d like us to answer! You can tell us on Twitter or join the discussion in the community 😃

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