When you deposit money in a bank, the bank will usually lend out (part of) your deposits. This is how a bank makes most of its money! What this means is that your money is effectively “at risk” if the bank goes bankrupt, hence there is a need for deposit insurance, commonly known as FSCS, for up to £75,000.
On the contrary, your Plum savings are deposited in a secure account and held as e-Money by MangoPay, our e-Money provider. This means two things: (1) the money cannot be claimed by any of MangoPay's creditors and (2) the holding bank cannot lend out your savings – it is ring-fenced and kept separate from the bank’s lending activities. Hence, there is no need for deposit insurance. If the holding bank, our e-Money provider, or ourselves go bankrupt you will not lose any of your money. This is very important to us and will always be the case with your Plum deposits. In a nutshell, the money is equally safe – if not safer – with Plum vs your bank.