FSCS (Financial Services Compensation Scheme)
The UK’s statutory safety net, paying compensation when authorised firms fail.
The FSCS protects deposits up to £85,000 per person per banking licence (£170,000 for joint accounts), and certain temporary high balances up to £1 million for six months after a life event like a property sale. Investments with an FCA-authorised firm are covered up to £85,000 if the firm itself fails (not for ordinary market losses). Long-term insurance, including life cover and annuities, has 100% protection with no upper limit. Several brands can share a single banking licence (HSBC and First Direct, for example), so check the FCA Register before stacking accounts.
A 60-second lesson that puts this term in context, alongside the others, lives inside the Finlo app.