All funds that you are holding with us are secured but different security rules apply.
Money hold on e-money account
All money you put into Depoway Savings app, before we move them to our partner banks, first go in the Hub account. For this short period of time (up to 1 business day), your money will not by covered by the FSCS but will be safeguarded according to regulations. Safeguarding means that we will hold your money on dedicated client money account maintained in large commercial UK bank (client money accounts keep your money separated from our own money).
Placing your funds with our partner banks
All funds received from you will be automatically deposited on your behalf in savings accounts provided by our partner banks you choose.
All of our partner banks are authorised by the Prudential Regulation Authority (PRA) and are covered by the FSCS. This means that if a partner bank were to fail and is unable to pay its debts, the FSCS will compensate you for any eligible deposits you hold with that bank, up to £85,000. However, it should be noted that this insurance limit applies to all your funds held in a given bank, including those outside the Depoway Savings app. Your are obliged to control your funds covered by the insurance in a given bank. Any deposits you hold with the partner bank above this limit will not be covered by the FSCS, but could still be reclaimed from the bank through the insolvency process (there are no guarantees and it could take some time to claim).
If you want to learn more about FSCS coverage please look here.
A higher compensation limit with Depoway
As you know, FSCS will compensate you for any eligible deposits you hold with a particular bank, up to £85,000. Any deposits you hold with the this bank above this limit will not be covered by the FSCS. But if you will hold this excess amount on different bank, your compensation limit will grow up to £170,000 (£80,000 compensation limit in a first bank and £85,000 in another). And that's how Depoway works. Our AI algorithms distribute your savings in such a way that you never will holding more than £85,000 in one particular partner bank. In other words, if Depoway will cooperate with, for example, 5 banks, your total FSCS insurance limit will be £425,000.