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How is my money protected?
How is my money protected?

Your money is safe in Communion and here's why

Updated over a week ago

How is my money protected?

At Communion, we take the safety and security of your money very seriously.

There are three companies who work together to provide you with your Communion savings account: us (Communion), Santander International and Bondsmith. In the unlikely event that we or either of the companies responsible for holding or moving your money fails, your money is protected every step of the way.

Here’s an explanation of the role each partner plays and how your money is protected:

Company

Type of service

Details of service provided

Protection offered if the company fails

Communion

App

Provides you with the functionality to deposit money into your Communion savings account. Communion does not hold your money itself.

The bonus that Communion pays you when you bring new members into Communion is discretionary and isn’t linked to your standard interest rate. It is held in Communion’s bank account with Revolut, which is protected by the FSCS.

N/A

Santander International

Bank

Holds your funds and pays the interest on your savings. Santander International is covered by the Financial Services Compensation Scheme (FSCS).

Your money is protected by the FSCS up to the value of £85,000 per person.

Bondsmith

Trustee

Receives your funds into a Safeguarded Hub account, then deposits your funds on Trust with Santander International. Bondsmith is regulated by the Financial Conduct Authority (FCA).

Money held in the Hub account is protected through the FCA’s safeguarding rules.

  1. Communion. We provide the functionality for you to make payments towards your deposits within our app. Communion is not a regulated deposit-taking bank and as such, we don’t hold your money.

    Communion does pay a bonus rate on your savings above your standard interest rate when you bring new members into Communion. This money is held by Revolut bank on behalf of Communion and is protected by the Financial Services Compensation Scheme (FSCS). This bonus or ‘boost’ is discretionary and in the event of Communion’s insolvency, we would not continue to pay the bonus on your savings.

  2. Santander International is the bank that holds your funds and pays the interest on your savings. Deposits held by Santander International are covered by the Financial Services Compensation Scheme (FSCS) - an independent scheme that was set up by the UK government to provide protection to customers of financial institutions in the event of a company's failure. The money held in your Communion savings account is protected by the FSCS up to the value of £85,000 per person across all accounts that person holds within Santander International accounts.
    If the bank providing your Communion Saves account fails, it may take longer to receive compensation from the FSCS than if you saved directly with a bank or building society. The FSCS will check and pay claims as soon as possible, and always with three months. For more information visit - https://www.fscs.org.uk/what-we-cover/banks-building-societies

  3. Bondsmith is the trustee we’ve partnered with to make your savings deposit on your behalf and manage the relationship with the bank that holds your funds (Santander International). Bondsmith is authorised and regulated by the Financial Conduct Authority (FCA) as an electronic money or e-money institution. It is not a bank. As an e-money institution, Bondsmith issues you electronic money (e-money) equal to your money held temporarily in a cash hub so you can see how much money you hold at any given time. It isn’t a savings account and it doesn’t pay any interest. In the unlikely event that Bondsmith fails, your money in the cash hub is not covered by the FSCS but is instead protected through the FCA’s safeguarding rules. Importantly, the money in the cash hub is kept separately from Bondsmith’s own company money in a safeguarded account with an approved bank (currently Clear Bank) that creditors can’t access. There’s no limit to the amount protected through safeguarding, but some costs could be taken by the administrator or liquidator if Bondsmith were to fail. This could impact the amount that you receive, and it could take longer to get your money back than if it were held directly with a bank.

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