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.
Your Plum savings are deposited in a secure account and held as e-Money by MangoPay, our e-Money provider. This means your money is ring-fenced and cannot be lent out by the bank. It also cannot be claimed by any of MangoPay's creditors.
This means 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.