With concerns being expressed this week about the possibility of a further downgrade of Lloyds and continuing uncertainty about the banking system in general, I thought it wise to issue a reminder about depositor protection.
Each individual banking license is separately protected by the Financial Services Compensation Scheme (FSCS)’s Depositor Protection Scheme, but the separate trading styles within that license are not separately protected.
The FSCS provides protection up to £85,000 of deposits per person, per banking license, in the event that the Bank was unable to repay depositors. Joint accounts may therefore be covered to a maximum of £170,000 per banking license.
