How Your Money Is Protected

Plum isn't a bank. This means we do not accept deposits or offer lending services.

However, as a regulated financial technology company, we accept payments, which are then held securely in segregated accounts with our partner banks, depending on the service you choose to use within Plum.

Plum operates under two regulated entities, with three different levels of permission and each has different protections in place for your money:

Check if your money is protected using the official FSCS Protection Checker.

FCA Contact Details

Website: www.fca.org.uk

Consumer Helpline: 0800 111 6768

From Abroad: +44 20 7066 1000

Email: consumer.queries@fca.org.uk

Check Plum’s registration on the FCA website.

What Happens If Plum or a Partner Fails?

Plum works with regulated banking and investment partners to keep your money secure. In the unlikely event that Plum or one of our providers fails, here’s how different protections apply:

Scenario	What Happens to Your Money?	Protection Level
Plum Fintech Ltd (e-money provider) fails	Funds in the e-money accounts (Primary Pockets) are safeguarded and held in a separate account with a regulated UK credit institution. If Plum or its e-money provider were to fail, these funds would be distributed in line with FCA safeguarding rules by a court-appointed insolvency practitioner.	Safeguarding rules apply (but no FSCS protection).
A partner bank (e.g., Citibank, Qatar National Bank (QNB), Lloyds, QNB or Investec) fails	You can claim compensation from FSCS up to £85,000 per person, per bank.	FSCS Protection up to £85,000.
Saveable Ltd (investment firm) fails	Investments are held under CASS rules and kept separate from Plum’s own money. If a shortfall occurs, you can claim FSCS compensation.	FSCS protection up to £85,000 (for eligible investment firms).
A stockbroker (e.g., Alpaca) fails	Stocks are protected by SIPC (US equivalent of FSCS) up to $500,000 per client.	SIPC Protection (up to $500,000).

How different accounts are protected

Find your account type and see what protections apply.

Money Type	Where It’s Held	Protection Level
Cash ISA	Citibank, Lloyds Bank & QNB	FSCS up to £85,000 per bank
Easy Access Interest Pockets	Investec Bank Plc	FSCS up to £85,000
95-Day Notice Pocket	Investec Bank Plc	FSCS up to £85,000
Primary Pockets (E-Money)	Modulr FS Ltd (E-Money Provider)	Safeguarded (FCA Regulations), but NOT FSCS protected
Plum Interest	Qualifying Money Market Fund (QMMF) held at Blackrock.	Segregated under CASS rules, FSCS may apply
Stock Investments	Held via Alpaca (US brokerage)	SIPC protection up to $500,000 per client
Pension	Quai - RBS

Understanding FSCS Protection

The Financial Services Compensation Scheme (FSCS) is a UK-backed scheme that protects your savings in case a regulated bank or provider fails.

Up to £85,000 per person, per bank.
Does NOT cover market losses on investments.
Check your FSCS eligibility using this tool.

Investments & Protection – CASS Rules Apply

Investments held with Saveable Ltd fall under the FCA’s Client Asset Sourcebook (CASS) rules, which ensure:

Your investments are held separately from Plum’s own funds.
Custody assets are ring-fenced, meaning they cannot be used for Plum’s operations.
If Saveable Limited fails, your investments remain protected, and you may be eligible for FSCS compensation up to £85,000.

Type of Investment	Protection
Plum ISA & GIA (Funds & ETFs)	FSCS protection up to £85,000 if the investment provider fails
Stocks (US & UK-listed via Alpaca)	SIPC protection up to $500,000 if the broker fails
Plum Interest (Money Market Funds)	Held in segregated accounts under CASS rules

Easy Access Pocket – FSCS Protection for Eligible Deposits

Funds placed into the Easy Access Pocket are held in trust with Investec Bank, which means they are classified as customer deposits, not investments. As a result:

Your money is protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per eligible person.
When you deposit money into your Easy Access Pocket, it is placed into a Pooled Trust Account at Investec Bank. This means that the account is held in Plum’s name but contains money that is beneficially owned by you and other Plum customers.
Plum does not have discretion over your money - your funds are recorded individually in a ledger that tracks your share of the total balance.
If you withdraw money, Plum deducts the corresponding amount from your balance in the ledger and transfers it back to you.Your funds remain your legal property, and Plum cannot use them for any other purpose.
If Investec Bank fails, eligible deposit holders can claim compensation from FSCS.

What This Means for You:

Feature	How It’s Protected
Who holds the money?	Investec Bank, under a trust arrangement.
Is FSCS protection available?	Yes – Up to £85,000 per eligible person.
What happens if Investec Bank fails?	FSCS may compensate eligible deposit holders up to £85,000.
What happens if Plum fails?	Your money remains held at Investec and is still protected.

This differs from Plum’s investment products, where funds are held under CASS rules rather than a deposit framework.

E-Money Safeguarding – How It Works

Unlike bank deposits, e-money accounts (Primary Pockets) are not covered by FSCS, but they are protected through safeguarding rules.

What does safeguarding mean?

Your money is held in a separate, ring-fenced account at a Tier 1 UK bank.
In case Plum or Modulr FS Ltd fails, funds would be returned in accordance with FCA safeguarding rules by an appointed insolvency practitioner.

Plum Interest

Money placed in Plum Interest is invested in units of a Qualifying Money Market Fund (QMMF) rather than held as cash deposits. This means it is classified as an investment, not a bank deposit, and is subject to different regulatory protections.

How it works

Your money is held Under FCA Client Asset (CASS) Rules (Safe Custody Protection)
- Your QMMF units are held separately from Plum’s assets, the fund manager’s assets, and the custodian’s assets.
- The fund provider and custodian must follow FCA “Safe Custody” rules, ensuring customer assets are ring-fenced.
- This means that, in the unlikely event of Plum, the fund manager, or the custodian becoming insolvent, your QMMF units should still be returned to you.
FSCS Protection May Apply in Certain Circumstances
- The Financial Services Compensation Scheme (FSCS) may cover up to £85,000 per person if the fund manager or custodian breached Safe Custody rules fraudulently, leading to a loss of assets.
- FSCS protection does not apply to market losses—only to cases where the fund manager or custodian fails to return client assets due to misconduct.
Regulatory Oversight & Stability
- The QMMF used in Plum Interest is highly regulated, with strict requirements ensuring liquidity and risk control.
- QMMFs are commonly used by pension providers, insurers, and financial institutions to hold large amounts of cash securely.
- As of January 2024, over $6 trillion is held in money market funds in the US and over €1.1 trillion in Europe.

What Happens If the Market Falls?

FSCS does not cover investment performance losses—if the market value of QMMF units drops, this is not covered.
However, the fund invests in highly secure, short-term assets backed by the UK Government, such as government bonds.
A loss would only occur if the UK Government defaulted on its debt obligations, which is an extremely unlikely scenario.