The Financial Services Compensation Scheme (FSCS) protects customers of UK financial services firms that have failed. If a company you hold money with has defaulted and can’t pay claims against it, the FSCS may step in to pay compensation, up to £120,000 in cash accounts per eligible person, per bank.
At Tembo, we hold customer money with our partner banks. Our FSCS information document shows which banks hold the money for each product. Because the money is held in accounts in Tembo’s name, an FSCS payment could take up to three months, rather than the usual seven days.
Please note, the £120,000 limit applies to the total amount of money you hold in cash accounts at any one bank, whether it is deposited by Tembo, by other providers, or by you directly with the bank. Some bank brands also share one limit because they're part of the same bank. You can check this using the FSCS's protection checker.
If you have a Tembo Stocks & Shares Lifetime ISA, the FSCS may be able to pay compensation of up to £85,000 per person, per firm if BlackRock (the fund manager) or Tembo went out of business and you lost money as a result. It doesn't cover losses from your investments falling in value.
For more information, please see the FSCS website.