FSCS Protection

The Financial Services Compensation Scheme

The Financial Services Compensation Scheme (FSCS) exists to protect customers of financial services firms that have failed. If a company you’ve been dealing with has failed and can’t pay claims against it, the FSCS can step in to pay compensation.

Moneybox is covered by the FSCS up to £85,000 per person for claims relating to investment products. 

For Savings products, such as the Cash Lifetime ISA (LISA) or notice accounts, your funds are protected by the bank holding your money. Moneybox does not hold your money itself, it uses third party banks. The banks we partner with are covered by the FSCS. You are covered up to £85,000 per person per bank for your total eligible deposits with a particular bank, whether that is deposited through Moneybox, other providers, or directly with the bank. 

Here we explain where your money is held so you can understand what banks you might need to consider in relation to FSCS cover.

Contributing to or withdrawing from Moneybox products (excluding the Moneybox pension) 

When you pay money in or withdraw money from a Moneybox product (excluding the Moneybox pension), the money passes through a client money bank account on its way to or from the relevant investment account or relevant cash product bank account.

Money paid in through Direct Debit is held with HSBC on its way to the relevant account. 

Money paid in through instant bank transfer is held with Starling bank on its way to the relevant account. 

Money paid out is held with HSBC on its way to the customer bank account. 

Contributing to or withdrawing from the Moneybox Personal Pension

When you pay money into the Moneybox Pension, the money passes through a client money bank account on its way to the Moneybox Pension Trust Bank Account before being directed to the investment funds.

When you transfer a pension to the Moneybox Pension, the money passes through the Moneybox Pension Trust Bank Account on its way to the investment funds.

When you withdraw money or transfer out from the Moneybox Pension, the money passes through the Moneybox Pension Trust Bank Account on its way to your bank account (in the case of a withdrawal) or the receiving pension scheme (in the case of a transfer out).

The money is held with HSBC.

Cash Lifetime ISAs

Moneybox customers may have one of three Cash Lifetime ISAs:

1. Cash Lifetime ISA powered by OakNorth 

This money is held with OakNorth Bank plc.

2. Cash Lifetime ISA powered by Investec

This money is held with Investec Bank plc.

3. Moneybox Cash Lifetime ISA

This money is held as client money with the following banks:

• Clydesdale Bank PLC
• Hampshire Trust Bank PLC
• HSBC Bank PLC
• Investec Bank PLC
• Arbuthnot Latham & Co. Limited
• First Abu Dhabi Bank P.J.S.C.
• Aldermore Bank PLC
• Santander Financial Services PLC
• Silicon Valley Bank UK
• Brown Shipley & Co Limited

The proportion of money held with each bank can vary over time. However, we will never hold more than 50% of the funds with any bank at any given moment.

Notice Accounts

1. 95 Day Notice Account

This money is held with Investec Bank plc.

2. 45 Day Notice Account 

This money is held with Charter Savings Bank.

3. 120 Day Notice Account (signed up before 01/10/2021)

This money is held with Charter Savings Bank.

4.  120 Day Notice Account (signed up after 26/10/2021)

This money is held with Shawbrook Bank

5. 32 Day Notice Account

This money is held with Investec Bank plc.

Regular Access Accounts

1. Reward Savings Account

This money is held with Cynergy Bank.

2. Simple Saver Account

This money is held with Shawbrook Bank

Investment Accounts

General Investment Account, Stocks and Shares Lifetime ISA, Stocks and Shares ISA & Junior ISA

Moneybox is covered by the FSCS up to £85,000 per person for claims relating to investment products. 

For our investment funds, if either ourselves or Winterflood Securities (our asset custodian of funds) is declared in default which results in a loss of your investments, then you are covered for up to £85,000 under the FSCS (note that ‘loss’ in this instance doesn’t include simply where the value of your investments fall as part of general investing risk). 

Our fund providers are also covered by the FSCS up to £85,000, except for  the funds which are domiciled outside of the UK and are not covered by FSCS or an equivalent foreign scheme. However, these investments are protected within the fund, so a high level of protection is in place in the unlikely event that a fund provider becomes insolvent. Please note that all ETFs, the Old Mutual MSCI World ESG index and HSBC Islamic Global Equity Index Fund are domiciled outside of the UK. 

US stocks, held in custody by DriveWealth (our US-based asset custodian of stocks), are not covered by the FSCS. However, these investments are segregated and held in a designated account at DriveWealth. This means that a high level of protection is available in the unlikely event of insolvency.   

Moneybox treats cash holdings held outside an investment product as client money in accordance with FCA regulation. This money is held across various diversified banks. All these banks are protected under the FSCS, which covers individual investor loss for up to £85,000.

For more information on FSCS cover, please see the our Terms and Conditions and the FSCS website.