Financial Services Compensation Scheme
Your eligible deposits with Al Rayan Bank are protected by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme, up to a total of £85,000. Most deposits are covered by the scheme.
Any deposits you hold above the FSCS compensation limit are unlikely to be covered, unless under specific circumstances, as determined by the FSCS.
Basic information about the protection of your eligible deposits
|Eligible deposits in Al Rayan Bank PLC (“the Bank”) are protected by||The Financial Services Compensation Scheme (“FSCS”)1|
|Limit of protection||£85,0001 per depositor per institution|
|If you have more than one eligible deposit at the same bank||All of your eligible deposits at the same bank are “aggregated” and the total is subject to the limit of £85,0002|
|If you have a joint account||The limit of £85,000 applies to each depositor separately3|
|Reimbursement period in the event of the failure of your bank, building society or credit union||20 working days4|
|Currency of reimbursement||Pound sterling (GBP, £) or for branches of UK banks operating in other EEA Member States, the currency of that State|
|To contact Al Rayan Bank PLC for enquiries relating to your account||Visit our contact us page|
|To contact the FSCS for further information on compensation||Call: 0800 678 1100 or 020 7741 4100
Write to: FSCS, 10th Floor Beaufort House, 15 St Botolph Street, London, EC3A 7QU
1 Scheme responsible for the protection of your eligible deposit
Your eligible deposit is covered by a statutory Deposit Guarantee Scheme. In the event of insolvency of your bank, building society or credit union, your eligible deposits would be repaid up to £85,000 by the Deposit Guarantee Scheme from 30 January 2017.
2 General limit of protection
If an eligible deposit is unavailable because a bank, building society or credit union is unable to meet its financial obligations, depositors are repaid by a Deposit Guarantee Scheme. This repayment covers a maximum of £85,000 per bank, building society or credit union.
This means that all eligible deposits at the same bank, building society or credit union are added up in order to determine the coverage level. If, for instance a depositor holds a savings account with £80,000 and a current account with £20,000, he or she will only be repaid £85,000.
In some cases eligible deposits which are categorised as “temporary high balances” are protected above £85,000 for six months after the amount has been credited, or from the moment when such eligible deposits become legally transferable. These are eligible deposits connected with certain events including:
- Certain transactions relating to the depositor’s current, or prospective main residence or dwelling
- A death, the depositor’s marriage or civil partnership, divorce, retirement, dismissal, redundancy or invalidity
- The payment to the depositor of insurance benefits or compensation for criminal injuries or wrongful conviction
3 Limit of protection for joint accounts
In case of joint accounts, the limit of £85,000 applies to each depositor. However, eligible deposits in an account to which two or more persons are entitled as members of a business partnership, association or grouping of a similar nature, without legal personality, are aggregated and treated as if made by a single depositor for the purpose of calculating the limit of £85,000.
The Deposit Guarantee Scheme will repay your eligible deposits (up to £85,000) based on the following schedule, other than where specific exceptions apply:
Until 31 December 2018 - within 20 working days
From 1 January 2019 until 31 December 2020 - within 15 working days
From 1 January 2021 to 31 December 2023 - within 10 working days
From 1 January 2024 onwards - within 7 working days.
Where the FSCS cannot make the repayable amount available within 7 working days, it will, from1 June 2016 until 31 December 2023, ensure that you have access to an appropriate amount of your eligible deposits to cover the cost of living (in the case of a depositor which is an individual) or to cover necessary business expenses (in the case of a depositor which is not an individual or a large company) within 5 working days of a request.
If you have not been repaid within these deadlines, you should contact the Deposit Guarantee Scheme, since the time to claim reimbursement may be barred after a certain time limit.
A deposit is excluded from protection if:
- The holder and any beneficial owner of the deposit have never been identified in accordance with money laundering requirements. For further information, contact your bank.
- The deposit arises out of transactions in connection with which there has been a criminal conviction for money laundering.
- It is a deposit made by a depositor which is one of the following: credit institution, financial institution, investment firm, insurance undertaking, reinsurance undertaking, collective investment undertaking, pension or retirement fund1, public authority, other than a small local authority.
1 Pension and retirement funds
Deposits by personal pension schemes, stakeholder pension schemes and occupational pension schemes of micro, small and medium sized enterprises are not excluded.
Other important information
In general, all retail depositors and businesses are covered by Deposit Guarantee Schemes. Exceptions for certain deposits are stated on the website of the responsible Deposit Guarantee Scheme. Your bank will also inform you of any exclusions from protection which may apply. If deposits are eligible, the bank shall also confirm this on the statement of account.
For further information refer to the FSCS website at www.fscs.org.uk.