In short, I have a personal current account with a UK bank which holds funds in Euros.

Is this account protected by the UK Financial Services Compensation Scheme (FSCS)? If so, is the limit based in Euros or an exchange rate off of the sterling limit? And in which case, what exchange rate is used?

I've found various search results that say the current protection limit of £85,000 is "the equivalent of €100,000" (e.g. https://www.fscs.org.uk/news/comp-limits/limit-update/) but nothing that specifically says which currencies are protected under the scheme or the mechanics of how it protects non-sterling currencies.

  • I've submitted this as a query through their "Contact Us" form.
    – Vicky
    Dec 29, 2020 at 12:44
  • @Vicky - fab, thanks. Bonus points if their answer has been updated to include the imminent economic upheaval in the UK at the end of the "Brexit Transition Period" that finishes in a couple of days time (sadface)!
    – Mike
    Dec 29, 2020 at 22:49

2 Answers 2


Are Euro deposit accounts in UK banks protected a) if the customer in UK-based, b) if they’re a non-UK resident?

Yes, foreign currency accounts with failed UK banks would be converted to GBP prior to compensation been paid. There is no residency requirement.


  • This doesn’t answer the whole question and I’m sure the OP had found this info themselves already. The question is how do they determine the exchange rate to use when calculating the compensation payable.
    – Vicky
    Jan 3, 2021 at 14:11

I googled for FSCS "exchange rate" and found


The Depositor Protection Rules require that the exchange rate as at the default date is used when converting foreign currency accounts into Sterling, but do not require a particular exchange rate to be used. However, FSCS recommends the Bank of England’s spot rate on the date of default to be appropriate.

Deposit takers can find the relevant exchange rates at the website below and should note that the rate for a certain day is not published until the morning of the following day.


FSCS asks deposit takers to provide the exchange rate and source of the exchange rate used in their SCV effectiveness report.

The SCV (Single Customer View) is a report that deposit takers (ie banks) must provide to the FSCS.

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