# Banking license - security of funds **URL:** \ **Category:** Monzo Chat\ **Created:** [24 March 2017 20:09 UTC](https://community.monzo.com/t/banking-license-security-of-funds/7996 "2017-03-24T20:09:23Z")\ **Posts on this page:** 11\ **Page:** 1
**Author:** ![Demmedelusive](https://dub1.discourse-cdn.com/monzo/user_avatar/community.monzo.com/demmedelusive/32/62464_2.png) [@Demmedelusive](https://community.monzo.com/u/Demmedelusive)\ **Post date:** [24 March 2017 20:09 UTC](https://community.monzo.com/t/banking-license-security-of-funds/7996/1 "2017-03-24T20:09:23Z")
I’m now using my card instead of my current bank debit card - official. With that in mind can you remind me where we are in respect of fund security FCA-wise? ---
**Author:** ![anon44204028](https://avatars.discourse-cdn.com/v4/letter/a/ed655f/32.png) [@anon44204028](https://community.monzo.com/u/anon44204028)\ **Post date:** [24 March 2017 20:10 UTC](https://community.monzo.com/t/banking-license-security-of-funds/7996/2 "2017-03-24T20:10:56Z")
Until the current account is launched there is no FCSC cover. That deposit protection scheme is only for bank accounts not pre paid cards ---
**Author:** ![alexs](https://dub1.discourse-cdn.com/monzo/user_avatar/community.monzo.com/alexs/32/2443_2.png) [@alexs](https://community.monzo.com/u/alexs)\ **Post date:** [24 March 2017 20:13 UTC](https://community.monzo.com/t/banking-license-security-of-funds/7996/3 "2017-03-24T20:13:29Z")
Following on from Richard’s comment, here’s the confirmation from the Monzo team that the current accounts will have [FSCS protetction](https://www.fscs.org.uk/what-we-cover/products/banks-building-societies/). > **[Launching The Bank](https://monzo.com/blog/2016/08/15/launching-the-bank/)** > > Last week we received news from the Bank of England that we’d been granted authorisation to conduct banking activities. ---
**Author:** ![anon44204028](https://avatars.discourse-cdn.com/v4/letter/a/ed655f/32.png) [@anon44204028](https://community.monzo.com/u/anon44204028)\ **Post date:** [24 March 2017 20:22 UTC](https://community.monzo.com/t/banking-license-security-of-funds/7996/4 "2017-03-24T20:22:52Z")
When the current account are launched they will initially be sole user accounts with £85,000 permanent cover and £1,000,000 short term cover for things like property transactions or handling the estate of a deceased relative (see [https://www.fscs.org.uk/what-we-cover/questions-and-answers/qas-about-temporary-high-balances/](https://www.fscs.org.uk/what-we-cover/questions-and-answers/qas-about-temporary-high-balances/) for details of this higher limit) If in the event Monzo do decide to introduce joint accounts at some point they have a different limit of £170,000. ---
**Author:** ![Demmedelusive](https://dub1.discourse-cdn.com/monzo/user_avatar/community.monzo.com/demmedelusive/32/62464_2.png) [@Demmedelusive](https://community.monzo.com/u/Demmedelusive)\ **Post date:** [24 March 2017 20:24 UTC](https://community.monzo.com/t/banking-license-security-of-funds/7996/5 "2017-03-24T20:24:51Z")
Ah, so what level of protection does exist for prepaid cards, please? ---
**Author:** ![anon44204028](https://avatars.discourse-cdn.com/v4/letter/a/ed655f/32.png) [@anon44204028](https://community.monzo.com/u/anon44204028)\ **Post date:** [24 March 2017 20:27 UTC](https://community.monzo.com/t/banking-license-security-of-funds/7996/6 "2017-03-24T20:27:43Z")
There is no scheme covering pre-paid cards. However the funds in most pre-paid card companies tend to be kept in ring-fenced accounts separate from company accounts and liabilities ---
**Author:** ![alexs](https://dub1.discourse-cdn.com/monzo/user_avatar/community.monzo.com/alexs/32/2443_2.png) [@alexs](https://community.monzo.com/u/alexs)\ **Post date:** [24 March 2017 20:29 UTC](https://community.monzo.com/t/banking-license-security-of-funds/7996/7 "2017-03-24T20:29:19Z")
Monzo’s [terms](https://monzo.com/terms/#the-card) currently state that: > The card is an e-money product, and as such it is not covered by the Financial Services Compensation Scheme. In the unlikely event that [Wirecard Card Solutions Ltd](https://www.wirecard-cardsolutions.co.uk/) becomes insolvent, your funds may become valueless and unusable, and as a result you may lose your money. ---
**Author:** ![anon44204028](https://avatars.discourse-cdn.com/v4/letter/a/ed655f/32.png) [@anon44204028](https://community.monzo.com/u/anon44204028)\ **Post date:** [24 March 2017 20:31 UTC](https://community.monzo.com/t/banking-license-security-of-funds/7996/8 "2017-03-24T20:31:37Z")
yes Alex…that is if Wirecard become insolvent, but if Monzo become insolvent, have they separated off the customer funds behind a ring-fence like a few other companies have? ---
**Author:** ![alexs](https://dub1.discourse-cdn.com/monzo/user_avatar/community.monzo.com/alexs/32/2443_2.png) [@alexs](https://community.monzo.com/u/alexs)\ **Post date:** [24 March 2017 20:35 UTC](https://community.monzo.com/t/banking-license-security-of-funds/7996/9 "2017-03-24T20:35:15Z")
Good point, yes they have. From Monzo’s [ethics page](https://monzo.com/ethics/) - > Before we become a fully licensed bank, your deposits are held by Wirecard Card Solutions Ltd. in a ring-fenced client-monies account. ---
**Author:** ![Demmedelusive](https://dub1.discourse-cdn.com/monzo/user_avatar/community.monzo.com/demmedelusive/32/62464_2.png) [@Demmedelusive](https://community.monzo.com/u/Demmedelusive)\ **Post date:** [24 March 2017 20:36 UTC](https://community.monzo.com/t/banking-license-security-of-funds/7996/10 "2017-03-24T20:36:34Z")
Thankyou chaps - as usual excellent advice. ---
**Author:** ![system](https://global.discourse-cdn.com/monzo/original/3X/a/e/aedf2f7852aef6ffcd99f29eac49128cfbd2ecc3.svg) [@system](https://community.monzo.com/u/system)\ **Post date:** [20 September 2017 21:10 UTC](https://community.monzo.com/t/banking-license-security-of-funds/7996/11 "2017-09-20T21:10:26Z")
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