How much of my company's money will be insured using a business bank account?

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Evening

Generally, I would expect a business bank account to include insurance on the funds I am depositing. Do you know whether there is a uniform insurance policy for the amount banks are willing to protect? I don’t doubt it changes slightly from bank to bank, but I just thought there may be some government guidance for it.

Answers

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The maximum sum of money that is insured in a business bank account is £85,000 per person per institution. This means that up to £85,000 of your money is protected if your UK-regulated bank, building society or credit union bust. This insurance is guaranteed by the government backed Financial Services Compensation Scheme (FSCS).

If you have more than one account with the same institution, you will only be covered up to that sum for one account, regardless of whether you have more than £82,000 in different accounts. To protect yourself in the best way possible, you should bank with different institutions if you have more than the insured sum in your account(s).

Limited companies and LLPs are classes as individual persons, so your business bank account is protected in the same way. Sole trader accounts, however, as not. Sole trader businesses are not classes and individual persons, so you should avoid having your business and personal accounts with the same institution.

For detailed information on protecting your money, please take a look at this guidance from the Money Saving Expert.

a year ago
 

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