Protecting your savings
Deposits
A deposit is money in accounts like current and savings accounts, including Individual Savings Accounts (ISAs). Whether you’re an individual or a company, FSCS protects these deposits should your bank, building society or credit union fail.
If any of your savings are held with us via a savings platform then the money you deposit is protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS).
The limit the FSCS applies to each person is for the total amount you have with Paragon, whether it is deposited directly with us or through a third party provider.
Compensation Limit
FSCS protects deposits up to £85,000 per person or company, per authorised firm.
Important points to know
1. The limit applies to individuals and companies, NOT accounts. So for joint accounts the limit applies to each named account holder. For example, as long as you or the other account holder does not have any other accounts with the same firm, FSCS would protect up to £170,000 of savings in a joint account. This is because you each receive up to £85,000 under the scheme.
2. The limit applies per authorised firm. This is important because some firms operate more than one brand under the same FCA or PRA authorisation number. This means although accounts are held under different brands you will only be entitled to a total of £85,000 or £170,000 if joint, as the firm has one authorisation number. You should therefore check:
- Whether your deposits are with a bank or building society that shares an authorisation number with another brand of that firms, and
- Whether your total deposits with all those brands are more than £85,000
This does not apply to your savings with us, as we do not offer savings accounts under any other brand