Is my money safe in a neo bank? Deposit protection explained

Neo banks feel different from traditional banks, but the rules that protect your money depend on one thing: the licence of the company that holds it. Some app-based providers are fully licensed banks. Others are payment or e-money companies. Your protection is different in each case.

Two kinds of protection

1. Deposit guarantee (banks). If a licensed bank fails, a national scheme pays back eligible deposits up to a limit, per person, per bank. This is the strongest protection.

2. Safeguarding (e-money and payment companies). These companies are not banks and cannot lend out your money. By law they must keep it separate from their own funds, usually in accounts at partner banks or in very safe assets. If the company fails, safeguarded money should be returned to customers, but there is no government-backed guarantee and the process can take time.

Protection limits by country

Where the bank is licensed	Scheme	Limit per depositor, per bank
European Union and EEA	National deposit guarantee scheme	€100,000
United Kingdom	Financial Services Compensation Scheme (FSCS)	£120,000
Sweden	Swedish deposit guarantee	SEK 1,150,000 (from 1 January 2026)
South Africa	Corporation for Deposit Insurance (CODI)	R100,000

The limit applies per bank, not per brand. If two apps keep your money at the same bank, the limit covers your total there, not each app separately.

How the providers we compare are protected

Revolut: in the EEA, Revolut Bank UAB is a Lithuanian bank, and eligible deposits are protected up to €100,000. In the UK, Revolut Bank UK Ltd is a licensed bank with FSCS protection up to £120,000. Some older UK accounts are still being moved from Revolut Ltd, which is an e-money company: check the entity name in your app.
Monzo and Starling Bank: UK banks. Eligible deposits are protected by the FSCS up to £120,000.
N26: a German bank. Deposits are protected up to €100,000 by the German statutory scheme.
bunq: a Dutch bank. Deposits are protected up to €100,000 by the Dutch scheme.
Klarna: Klarna Bank AB is a Swedish bank, and Klarna balance is covered by the Swedish deposit guarantee.
Wise: not a bank. Customer money is safeguarded and is not covered by a deposit guarantee.
Qonto: a French payment institution, not a bank. Client funds are safeguarded at partner banks.
Tide: Tide current and savings accounts are provided by ClearBank, a UK bank, with FSCS protection up to £120,000. Some older Tide e-money accounts are safeguarded instead.
GoTyme Bank (formerly TymeBank): a South African bank. Deposits are insured by CODI up to R100,000.

How to check your own account

Find the legal entity that holds your money. It is in the app (account details), in the terms, or at the bottom of the provider's website.
Check that entity on the regulator's register in its country, for example the FCA register in the UK or the Bank of Lithuania's list of banks.
Look for a deposit guarantee statement or FSCS information sheet. Banks must provide one.
If the provider is an e-money or payment company, read how it safeguards funds and where.

What this means in practice

For everyday spending, both banks and well-run e-money companies are widely used. For larger savings, many people prefer an account covered by a deposit guarantee and keep their balance under the protection limit at any single bank.

See every provider's licence and protection details in our neo bank comparison, or read how to choose a neo bank.

This guide is general information, not financial advice. Fees, features and availability change, so check the provider's own website before you apply. Read how we compare providers and our affiliate disclosure.