Financial Services Compensation Scheme FSCS
The Financial Services Compensation Scheme (FSCS) is the UK's Deposit Protection Scheme. Undeb Credyd y Barcud Coch Cyfyngedig (Red Kite Credit Union) is a separate deposit-taking company in this scheme. Eligible savings in Red Kite Credit Union are safe and protected by FSCS independently of any other credit union and cannot be put in jeopardy by the failure of any other credit union.
Under this scheme eligible savings * are protected in the event of the 'authorised deposit taker' becoming insolvent or otherwise unable to repay the savings. The current limit of protection is £85,000. As this is higher than the maximum savings deposit allowed for any one member in Red Kite Credit Union, all your savings with us are safely covered.
The FSCS limit applies to the total savings held by an individual member and includes any share in a joint account.
FSCS has prescribed an Information Sheet and Exclusions List and all new members of the credit union receive a copy of this with the application form or when they join. It is also sent regularly to all active members with the notice of the Annual General Meeting. * One reason for ineligibility under the scheme is that the credit union does not have up-to-date identity verification for you. Your statement sent anually will indicate whether the credit union believes your savings are eligible for FSCS cover. If the statement implies that this exclusion rule may apply to you it is recommended that you contact the credit union as soon as possible to arrange to supply this KYC (know your customer) information.
This document is available for download here.
Whether savings in a Corporate account are covered by the FSCS scheme depends on the type of organisation holding the account. Exclusions are given in the document referred to above.