Guide · Last checked 8 November 2026

E-money account or bank account: what protects your money

Many app-based business accounts aren't banks. That doesn't make them unsafe, but the protection works differently, and it matters most if you keep large balances.

By the editorial team.

The short answer

Banks: eligible deposits are covered by the Financial Services Compensation Scheme (FSCS) up to £120,000 per eligible person, per bank. Payouts are automatic.
E-money institutions: the FSCS says it can't protect money held with e-money or payment services firms. Instead, these firms must safeguard customer money by keeping it separate from their own.

How FSCS protection works

The FSCS limit is £120,000 per person per firm, across current, savings and fixed-term deposit accounts. It applies to sole traders and to limited companies. If you hold more than £120,000, the FSCS suggests spreading it across deposit takers with different firm reference numbers (FRNs), with no more than £120,000 at each.

How safeguarding works

An e-money institution has to keep customer money apart from its own: in segregated accounts at authorised banks, in secure liquid assets such as government bonds, or covered by an insurance policy or guarantee. It can't use that money for its running costs or lend it out.

If the firm fails, the safeguarded money forms a separate pool that its general creditors can't claim. An insolvency practitioner then returns it to customers. Incard's safeguarding statement is candid that distribution may take time and that the amount returned depends on the value of the pool. That is the real difference from the FSCS: not whether your money is kept separate, but how quickly and certainly you get it back if something goes wrong.

Which business accounts are banks

**Table notes:** correct as of 8 November 2026, from each provider's own pages. Some providers use both models.
Account	Type	What protects your balance
Airwallex	E-money	Airwallex says funds are safeguarded in line with local regulations. The FSCS says it can't protect money held with e-money firms.
ANNA	E-money	Funds in the main ANNA account are safeguarded and not protected by the FSCS. ANNA savings accounts are provided by Griffin Bank and are FSCS-protected.
HSBC UK Small Business Banking Account	Bank	Eligible deposits with a UK bank fall under the FSCS limit of £120,000 per eligible depositor, per bank. Use the FSCS checker to confirm.
Incard	E-money	Safeguarded: Incard keeps customer funds separate from its own money, in accounts with authorised credit institutions, and doesn't lend or invest them. Funds are not protected by the FSCS.
Mettle by NatWest	Bank	Eligible deposits are protected up to £120,000 by the FSCS. Some older Mettle e-money accounts, provided by PrePay Technologies (FRN 900010), are safeguarded instead and not FSCS-protected.
Monzo Business	Bank	Monzo says eligible deposits are protected by the FSCS up to £120,000.
PostFinance business account	Bank	Swiss depositor protection, run by esisuisse, covers up to CHF 100,000 per customer, with all accounts at the same bank added together.
Revolut Business	Bank	Eligible deposits are protected by the FSCS up to £120,000 in total.
Starling Bank business account	Bank	Eligible deposits are protected up to £120,000 by the FSCS.
Tide	Bank	Eligible deposits in ClearBank-powered Tide accounts are protected up to £120,000 per depositor by the FSCS, across all accounts with ClearBank. Some members still hold e-money accounts with PrePay Technologies (sort code 23-69-72), which are safeguarded rather than FSCS-protected.
Wise Business	E-money	Safeguarded: Wise holds customer money as cash at banks, in secure liquid assets such as government bonds, or backed by a guarantee. E-money and payment services from Wise Payments Ltd aren't covered by the FSCS.

Watch for mixed setups. Tide's accounts are held at ClearBank, a bank, but some older Tide accounts are e-money. Mettle's are with NatWest, but some older Mettle accounts are e-money. ANNA's main account is e-money while its savings account is with a bank. Check which entity holds your money in the app or the terms.

Using both

A common reason to pick an e-money account is a feature a bank doesn't offer, such as card cashback or cheaper currency exchange. If that's you, consider keeping reserves and tax money in an FSCS-protected bank account and using the e-money account for day-to-day spending. You can check any firm's status on the FCA register.

Our switching guide covers running two accounts.

Sources

All checked on 8 November 2026. Where a provider's help centre or legal terms differ from its marketing pages, we follow the help centre and terms.