How Safe is Your Money With FinTech like Revolut & WISE?
1 Aug 2025 · 2 min read
When you open an account with a shiny new fintech app like Revolut or WISE, it's easy to assume your money is just as safe as it would be in a high street bank. But that's not always the case.
Here's the key difference:
Ring-Fenced E-Money Accounts (E-Money Institutions)
What it means: E-money institutions like Wise, Revolut (for their e-money accounts), and many fintechs don't hold a full UK banking license. Instead, they're licensed to issue electronic money.
How your money is kept: Your funds are "safeguarded" by being kept in ring-fenced accounts at a separate bank. This means the fintech can't use your money for its own operations, and in the event they go bust, administrators should return the safeguarded funds to you.
What's missing: Ring-fencing is not the same as FSCS protection. If the safeguarding process fails or funds are mishandled, you might lose your money—and there's no compensation scheme to fall back on.
FSCS-Protected Fully Authorised Banks
What it means: Banks fully authorised by the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) offer protection through the Financial Services Compensation Scheme (FSCS).
How your money is kept safe: If the bank fails, the FSCS will compensate you up to £85,000 per person, per bank.
Peace of mind: FSCS is a statutory compensation scheme—if the worst happens, you get your money back automatically (up to the limit).
Why It Matters
For day-to-day spending, e-money apps can be convenient, and ring-fencing provides a level of security. But for larger savings or emergency funds, FSCS-protected banks offer far stronger protection.
If you're looking for safe places to store your savings with full FSCS protection, check our UK savings rates comparison which only lists FSCS-protected accounts from fully authorized banks.
Bottom line: If your fintech app doesn't have a banking license and FSCS cover, your money is safeguarded—but not guaranteed. Make sure you know where your money is going, and choose the right account for your needs.
For peace of mind with your savings, stick to traditional FSCS-protected savings accounts for any money you can't afford to lose. Use our comparison table to find the best rates from fully regulated banks.