Is Flagstone FSCS protected? Where your money is actually held

Flagstone is not a bank. Money is held on trust in accounts in Flagstone's name: first in a holding account at HSBC Bank plc, then in savings accounts at the partner banks you choose from a panel of 65+, so the FSCS protects up to £120,000 per person at each bank's licence if one of those banks fails, shared with money held there directly or through other platforms. Flagstone's terms state that some partner banks, such as those in the Channel Islands, are not FSCS-protected, and that holding the accounts for you is not an FCA-regulated activity.

Flagstone is an FCA-authorised payment institution running a cash deposit platform, not a bank: customers contract with Flagstone Group Ltd (FCA firm reference 605504). Every statement below is taken from the source named beneath it, last checked 24 October 2026. It is information, not advice.

Who holds the money, product by product

Who Flagstone is

Flagstone Group Ltd (company 08528880, 26-27 Oxendon Street, London SW1Y 4EL) is authorised by the FCA under the Payment Services Regulations 2017 with firm reference 605504. Its terms state: "Only our account information services and payment initiation services are regulated by the FCA", and that "Our holding of savings accounts and the Flagstone holding account on your behalf" is not regulated by the FCA.

Flagstone's FAQ states: "No, Flagstone isn't a bank. Instead, we're the UK's leading savings platform", working with 65+ partner banks.

For the Cash ISA, "Flagstone has partnered with WealthKernel, who are acting as ISA Manager", and customers have a direct contract with WealthKernel once they accept WealthKernel's Cash ISA terms.

Flagstone's Jersey subsidiary, Flagstone International Limited, regulated by the Jersey Financial Services Commission, was sold to Flagstone Holding Company Limited on 26 March 2026.

How each product is protected

Money in the holding account and in savings accounts is held on trust in segregated accounts in Flagstone's name, with the customer "absolutely entitled" to it. If the holding account provider or a partner bank is an FSCS member and fails, eligible customers may be compensated by the FSCS; from 1 December 2025 the cap is "£120,000 in total per bank across all products, per individual".

Not all partner banks are FSCS-protected: "Not all partner banks on our online platform are covered by the FSCS – this will be clearly outlined in the deposit terms. If you choose a savings account that isn't FSCS-protected, you accept the risk that you may lose some or all of your deposit in the event of the partner bank's insolvency." Banks outside the UK, such as in the Channel Islands, fall under local schemes.

Santander International, one of the banks on Flagstone's Cash ISA page, states that accounts opened with Santander Financial Services plc, Jersey Branch "are not covered by the Financial Services Compensation Scheme" but by the Jersey Bank Depositors Compensation Scheme, up to £50,000; which Santander International branch holds Flagstone deposits was not found.

If Flagstone or a partner bank fails

If Flagstone fails, the money in savings accounts "is held by the bank in question (not Flagstone)" and "would not be affected", and holding-account cash is kept in a "blind trust" separate from Flagstone's own funds.

If a holding account provider or partner bank fails, Flagstone "will be responsible for administering any claim on your behalf with the FSCS", which "could take longer to administer a claim through Flagstone than it would for a deposit you hold with a bank" directly. Flagstone's terms exclude its liability for any default by a holding account provider or partner bank: "This risk will remain with you at all times."

Does it share your FSCS limit?

Yes. Flagstone's terms state that the FSCS limit "applies to your total holdings with a bank and therefore includes all funds you may hold with a bank that is a holding account provider or partner bank through our online platform, or with that same bank through other accounts in your own name or other platforms."

Money waiting in the HSBC Bank plc holding account counts toward the same limit as any other money at HSBC Bank plc; Flagstone's FAQ adds that "it's your responsibility to understand which banks sit within the same banking group".

Size

Flagstone says it helps "over 75,000 clients" and has "over £20bn in assets on our platform", with 65+ partner banks.

The Flagstone group made a gross profit of £58.9 million (2024: £49.9 million) and an operating profit of £3.6 million (2024: £4.7 million) in 2025, with shareholders' funds of £34.9 million at 31 December 2025; average headcount rose from 258 to 346.

Regulatory record since 2020

No FCA fine, final notice or public enforcement action against Flagstone Group Ltd since 2020 was found in searches of fca.org.uk and the web. The FCA has published a warning about a clone firm impersonating "Flagstone Investment Management", which concerns a third party, not Flagstone.

The fine print

Flagstone keeps a share of the interest before showing rates: its maximum share on savings accounts is 0.30% a year and 0.15% on Cash ISA accounts, and it also "earns interest on cash in your holding accounts", which pays the customer nothing.

Flagstone's FAQ says that "Should Flagstone go into liquidation, the FSCS will protect all eligible funds in your holding account (up to £120,000 for individuals)"; its terms say FSCS compensation is available if the holding account provider or partner bank "is unable to meet its obligations", and that holding the accounts on the customer's behalf is not FCA-regulated. The minimum to open an individual or joint account is £10,000.

Holding account providers "may not be 'ring-fenced' under Section 142A of the FSMA, which means they may also engage in activities such as investment and wholesale banking."

Frequently asked questions

Is Flagstone FSCS protected?

Flagstone is not a bank. Money is held on trust in accounts in Flagstone's name: first in a holding account at HSBC Bank plc, then in savings accounts at the partner banks you choose from a panel of 65+, so the FSCS protects up to £120,000 per person at each bank's licence if one of those banks fails, shared with money held there directly or through other platforms. Flagstone's terms state that some partner banks, such as those in the Channel Islands, are not FSCS-protected, and that holding the accounts for you is not an FCA-regulated activity.

Which bank holds my Flagstone money?

Holding account (all money waiting to be placed, returned or withdrawn): HSBC Bank plc (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Savings accounts (fixed term, notice and instant access): Partner banks chosen by the customer from a panel of 65+ (the full panel is shown only inside Flagstone's platform) (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Cash ISA (examples of partner banks shown publicly, not the full panel): AlRayan Bank (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Cash ISA (examples of partner banks shown publicly, not the full panel): LHV Bank (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Cash ISA (examples of partner banks shown publicly, not the full panel): Paragon Bank PLC (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Cash ISA (examples of partner banks shown publicly, not the full panel): Santander International (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence).

What happens if Flagstone goes bust?

If Flagstone fails, the money in savings accounts "is held by the bank in question (not Flagstone)" and "would not be affected", and holding-account cash is kept in a "blind trust" separate from Flagstone's own funds.

Does Flagstone share the FSCS limit with my other savings?

Yes. Flagstone's terms state that the FSCS limit "applies to your total holdings with a bank and therefore includes all funds you may hold with a bank that is a holding account provider or partner bank through our online platform, or with that same bank through other accounts in your own name or other platforms."

More: other savings apps and platforms, how FSCS protection works and which banks share a banking licence.