FSCS Business Protection: Who Qualifies and What You Get
Learn how your small business money is protected if your bank fails and which accounts are covered.
This scheme provides a safety net for small businesses by protecting the money held in their accounts if their bank fails.
Who it's for
This protection is specifically designed for small businesses. To qualify, your business must hold its funds in accounts that are held with authorised banks within the United Kingdom. This ensures that small-scale commercial entities have a level of security similar to what individual consumers receive.
What you get
If your bank fails and is unable to return your funds, this scheme provides protection for your money. You can receive compensation for your business funds up to a limit of £85,000. This helps ensure that a bank failure does not result in the total loss of your business's working capital or savings.
What it costs you
There is no cost to you to access this protection. It is automatically applied to all regulated accounts. You do not need to pay a separate fee or sign up for an additional insurance policy to be covered; if your account is regulated and meets the criteria, the protection is already in place.
The catch to know
The most important thing to understand is that this protection is not universal across all digital financial tools. It does not apply to money held in payment apps like PayPal or Revolut unless those specific services hold a full banking license. If your money is sitting in a platform that only offers payment services rather than full banking services, you may not be covered by this specific scheme.
How to apply
- Verify that your business bank account is held with an authorised UK bank.
- Confirm that the institution holds a full banking license rather than acting solely as a payment app.
- Check that your total balance in that institution stays within the protected limits.
- If your bank fails, follow the instructions provided by the official regulatory body to claim your funds.