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What happens if Monzo or Revolut goes bankrupt?
If a bank or e-money provider like Monzo or Revolut failed, the outcome would depend on how your money is held and what type of account you use. In the UK, customers are protected in different ways depending on whether the firm is a fully licensed bank or an e-money institution. That means the first step is to check the protection attached to your account.
For many customers, the main concern is whether their money is safe and how quickly they could access it again. In most cases, you would not simply lose everything overnight. But there may be delays while administrators work out which funds belong to customers and how they should be returned.
Monzo: bank protection under FSCS
Monzo is a UK bank, so eligible deposits are covered by the Financial Services Compensation Scheme, or FSCS. This protects up to £85,000 per person, per authorised bank, if the bank fails. If you hold a joint account, the limit is £170,000 because each account holder has their own protection.
If Monzo went bankrupt, the FSCS would normally step in and pay compensation quickly, often within seven days for protected deposits. That applies to money in current accounts, savings accounts, and other eligible deposits. Money above the limit may not be fully protected, so large balances can carry extra risk.
Revolut: protection depends on the account type
Revolut’s protection depends on whether your money is held in a bank account or as e-money. In the UK, Revolut has a banking licence for some customers, but many accounts and services are still structured differently from a traditional bank. It is important to check the terms shown in the app.
If your money is held in an account covered by deposit protection, up to £85,000 may be protected under the FSCS. If it is held as e-money, it is usually protected by safeguarding rules instead. Safeguarding means the firm must keep customer money separate from its own funds, but it is not the same as FSCS compensation.
What safeguarding means in practice
With safeguarded money, the provider keeps customer funds in separate accounts with partner banks. If the firm fails, those funds should not be treated as part of the company’s own assets. That improves the chance of customers getting their money back.
However, safeguarding is not a guarantee in the same way as deposit protection. In a failure, customers may need to wait while the money is identified and returned. If there is a shortfall, recovery could take longer and there is more uncertainty than with FSCS-covered deposits.
What you should do now
Check whether your money is covered by the FSCS, safeguarded, or both. If you keep more than £85,000 with one authorised bank group, consider spreading it across different providers. This helps reduce the risk of losing money above the protection limit.
It is also sensible to keep another bank account open for payments in case your app-based account is temporarily unavailable. If a provider ever gets into trouble, the firm, the regulator, or the FSCS would usually give instructions on what happens next. Until then, your money is generally protected according to the rules that apply to your account.
Frequently Asked Questions
If Monzo or Revolut were to fail, customer money would usually be protected by the relevant deposit guarantee rules for eligible balances, while e-money balances may be safeguarded separately depending on how the account is structured. The exact protection depends on the product and the jurisdiction, so customers should check the current terms and the applicable compensation scheme.
Not necessarily, because regulated banks and e-money firms have safeguards designed to protect customer funds. However, if you are worried, you can reduce concentration risk by keeping only the amount you need in any single provider and by checking which balances are protected under the current rules.
If a provider entered insolvency, card payments could be interrupted, delayed, or temporarily unavailable while administrators and regulators manage the situation. In practice, customers may still have access for a period, but they should have backup payment options and monitor official updates.
Direct debits may fail, be delayed, or continue only for a limited period depending on how the insolvency is handled. Customers should keep alternative payment arrangements ready and ensure important bills can be paid from another account if needed.
If your salary is paid into the account, the money already credited would be treated according to the account’s protection rules. To reduce disruption, it can help to keep an alternative bank account available for payroll and essential payments.
Protection depends on whether the product is a protected deposit, an e-money balance, or another type of financial product. Eligible bank deposits may be covered up to the applicable compensation limit, while safeguarded e-money may be held separately from company funds but is not the same as deposit protection.
The compensation available depends on the legal entity, the country, and the type of account. In many cases, eligible bank deposits may be covered by a deposit protection scheme up to a stated limit, while other balances may be handled through safeguarding or insolvency processes.
Joint accounts are usually assessed under the same protection framework as individual accounts, but the coverage and ownership rules can differ by jurisdiction. Customers should check whether the protection limit applies per person or per account in their specific country.
First, stay calm and rely on official communications from the company and the regulator rather than rumors. Then review your balances, note any essential payments, arrange backup banking access, and keep records of statements and transactions.
Access may remain available for some time, but it could become limited if systems are frozen or under administration. You should download statements and important records early, and avoid waiting until the last moment if you need to move money or confirm balances.
International transfers may be delayed, paused, or reversed depending on processing status and the point at which insolvency occurs. If you regularly send cross-border payments, it is wise to keep a second provider available for urgent transfers.
Standing orders may be disrupted if the account is restricted or closed during insolvency proceedings. Customers should move essential recurring payments to a backup account as soon as possible if there is credible concern about service continuity.
Check official announcements from the company, the financial regulator, and the relevant deposit protection or insolvency authority. Social media posts and forwarded messages are often inaccurate, so verify anything important with authoritative sources.
Save recent statements, screenshots of balances, payment confirmations, card details, and any messages about account status. Having these records makes it easier to prove your claim if a compensation or insolvency process is opened.
Yes, business accounts may have different protection limits, eligibility rules, and priorities in insolvency. Business customers should review the terms for their specific account and keep separate contingency banking arrangements in place.
The timeframe depends on the legal process, the type of funds, and how quickly records can be matched to customers. Some protected balances may be repaid relatively quickly, while other claims could take longer if they go through insolvency proceedings.
Possibly for a short period, but card functionality could be reduced or stopped if the account is frozen or the issuer withdraws services. It is prudent to keep a backup card from another provider if you rely on the account for daily spending.
Rewards, cashback, and similar benefits are usually subject to the account terms and may not be guaranteed if the provider becomes insolvent. Any unpaid rewards would be treated according to the relevant contractual and insolvency rules.
A normal account closure is a planned service action, while bankruptcy or insolvency involves legal proceedings to protect creditors and customers. In insolvency, access, transfers, and repayments can be restricted and handled under formal rules.
Official help should come from the company’s support channels, the financial regulator, the insolvency practitioner if one is appointed, and the applicable deposit protection authority. Avoid relying on unverified third-party advice for urgent money decisions.
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