Is Moneyfarm FSCS protected? Where your money is actually held

Not with deposit protection. The Moneyfarm Cash ISA does not hold your money in a bank: it is invested in Qualifying Money Market Funds, which Moneyfarm's own documents call "an investment, not a bank deposit", so the FSCS's £120,000 deposit cover does not apply. Instead the FSCS investment scheme covers up to £85,000 if Moneyfarm fails and assets are missing, which does not cover a fall in the funds' value.

Moneyfarm is an FCA-authorised investment firm and ISA manager, not a bank: customers contract with MFM Investment Ltd (trading as Moneyfarm) (FCA firm reference 629539). 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 Moneyfarm is

Moneyfarm is a trading name of MFM Investment Ltd (company 09088155, 90-92 Pentonville Road, London N1 9HS), authorised and regulated by the FCA under firm reference 629539 and registered by HMRC as an ISA manager; it is the provider of the Moneyfarm Cash ISA.

Moneyfarm states: "Moneyfarm is an investment firm and not a bank."

Moneyfarm executes orders "via Saxo Capital Markets Limited UK, an FCA regulated institution", which provides order routing, clearing, settlement and custody services.

How each product is protected

Moneyfarm states that its Cash ISA "is a Qualifying Money Market Fund (QMMF) investment instrument rather than a bank deposit therefore it is not eligible under the same FSCS deposit compensation scheme as a bank cash ISA", and is instead protected under the FSCS investment scheme up to £85,000, which "does not protect the value of your investment from fluctuations due to market events".

The Cash ISA key features document lists a capital risk, that the investment "may go down as well as up. You could get back less than you invested", and states: "FSCS investment protection up to £85,000 applies only if Moneyfarm fails. It does not cover market losses."

Uninvested cash is client money pooled in client bank accounts; if an approved bank becomes insolvent and does not hold enough, "You and our other clients would share that loss in proportion to the size of your respective entitlements", with FSCS deposit cover depending on the bank.

If Moneyfarm or a partner bank fails

If Moneyfarm fails, "your assets held in custody should be protected and returned to you, because they are segregated from Moneyfarm's own assets. However, the level of protection may depend on the specific circumstances of the failure." If there is a shortfall, the FSCS investment scheme may pay up to £85,000 per eligible person.

If a sub-custodian fails, Moneyfarm's terms say the custody assets would be returned to Moneyfarm and placed with another custodian; where Moneyfarm or a sub-custodian fails to meet its obligations, "FSCS protection may be available to eligible claimants".

Does it share your FSCS limit?

No, for the Cash ISA: money in the Moneyfarm Cash ISA is a fund investment, not a deposit with any bank, so it does not count toward or share any bank's £120,000 FSCS deposit limit. The separate £85,000 investment limit applies per person for MFM Investment Ltd.

For uninvested cash held as client money at a bank, the bank holding it is not named in current documents, so any overlap with a customer's own accounts at that bank cannot be checked from public sources.

Size

MFM Investment Ltd had 121,329 active customers at the end of 2025 (2024: 101,655) and assets under management of £4.46 billion (2024: £3.35 billion). Revenue rose 30% to £24.03 million and it made a loss after tax of £6.9 million (2024: £1.8 million); its parent provided a £3 million capital contribution and a letter of commitment supporting the going-concern basis.

Regulatory record since 2020

No FCA fine, final notice or public enforcement action against MFM Investment Ltd since 2020 was found in searches of fca.org.uk and the web.

The fine print

Moneyfarm's Cash ISA page says "Your savings are safeguarded by the Financial Services Compensation Scheme (FSCS), providing protection of up to £85,000 per eligible person, per bank", while the same page's FAQ says the Cash ISA "is protected under the Financial Services Compensation Scheme (FSCS) investment protection, not the deposit protection scheme", up to £85,000 if MFM Investment Ltd fails.

The rate "is subject to immediate change and will follow the QMMF yield", and any bonus rate and accrued bonus interest "will be lost if you do more than three withdrawals or if your amount falls below £500".

The 4.77% first-year rate quoted for new customers on 12 October 2026 is 3.60% AER variable plus a 1.17% boost "calculated daily and paid after 12 months"; transfers out count toward the three-movement limit.

Moneyfarm charges no fee on the Cash ISA, but "The fund managers of the Qualifying Money Market Funds that your monies will be invested in will pay Us an ongoing fee"; on investment accounts, "Moneyfarm reserves the right to retain any interest earned on the cash held in or outside your Portfolio."

Frequently asked questions

Is Moneyfarm FSCS protected?

Not with deposit protection. The Moneyfarm Cash ISA does not hold your money in a bank: it is invested in Qualifying Money Market Funds, which Moneyfarm's own documents call "an investment, not a bank deposit", so the FSCS's £120,000 deposit cover does not apply. Instead the FSCS investment scheme covers up to £85,000 if Moneyfarm fails and assets are missing, which does not cover a fall in the funds' value.

Which bank holds my Moneyfarm money?

Moneyfarm does not place its customers' money as deposits with a bank. Moneyfarm Cash ISA: Qualifying Money Market Funds selected by Moneyfarm (funds not named publicly) (units in a fund, an investment rather than a deposit). Uninvested cash in investment portfolios, Stocks and Shares ISA and pension: Saxo Bank (custodian) and Barclays Bank (legal entities not stated) (client money the firm holds on trust at banks: FSCS deposit cover up to £120,000 per person per bank if a bank fails, and investment cover up to £85,000 for any shortfall if the firm fails).

What happens if Moneyfarm goes bust?

If Moneyfarm fails, "your assets held in custody should be protected and returned to you, because they are segregated from Moneyfarm's own assets. However, the level of protection may depend on the specific circumstances of the failure." If there is a shortfall, the FSCS investment scheme may pay up to £85,000 per eligible person.

Does Moneyfarm share the FSCS limit with my other savings?

No, for the Cash ISA: money in the Moneyfarm Cash ISA is a fund investment, not a deposit with any bank, so it does not count toward or share any bank's £120,000 FSCS deposit limit. The separate £85,000 investment limit applies per person for MFM Investment Ltd.

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