Barclays savings accounts are not covered by FDIC insurance because Barclays is a British bank, not a U.S. bank
Barclays Bank PLC is headquartered in London and regulated by the Financial Conduct Authority (FCA), the UK's financial regulator. The FDIC only insures deposits held at banks chartered and operating under U.S. banking law. If you hold a savings account at Barclays, your deposits are protected by the UK's Financial Services Compensation Scheme (FSCS), not the FDIC.
This matters because the FSCS and FDIC have different coverage limits, different rules about what counts as a deposit, and different claim processes. If Barclays failed, you would file a claim with the FSCS in the UK, not with the FDIC in the United States.
Key Takeaways
- Barclays is regulated by the UK's Financial Conduct Authority, so FDIC insurance does not apply to any Barclays account.
- Barclays deposits are covered by the UK's Financial Services Compensation Scheme (FSCS), which protects up to £85,000 per person per bank.
- If you are a U.S. resident with a Barclays account, you lose FDIC protection but gain FSCS protection under UK law.
- The FSCS claim process is different from the FDIC process and involves filing with UK authorities, which can be slower for U.S.-based depositors.
How FSCS coverage works for Barclays accounts
The FSCS covers may be able to access deposits at Barclays up to £85,000 (roughly $107,000 USD, though the exchange rate changes daily) per depositor per bank. This means if you have £85,000 or less in a Barclays savings account and Barclays fails, the FSCS will reimburse you the full amount. If you have more than £85,000, only £85,000 is covered.
The FSCS covers most types of savings accounts, current accounts, and money market accounts held at Barclays. Joint accounts are treated separately — each account holder gets their own £85,000 limit. If you hold both a personal account and a joint account at Barclays, you have £85,000 coverage on each.
Unlike the FDIC, the FSCS does not cover certain products such as investment accounts, stocks, bonds, or funds held through Barclays. If you hold investments through Barclays, those are not covered by deposit insurance at all.
Why Barclays is not FDIC insured
The FDIC insures deposits only at banks that hold a charter issued by the U.S. Comptroller of the Currency, the Federal Reserve, or a state banking regulator. Barclays holds no such charter. Barclays operates in the United States through a subsidiary called Barclays Bank Delaware, which does hold a U.S. charter — but most Barclays accounts held by U.S. customers are with the UK parent company, not the Delaware subsidiary.
If you opened a Barclays account through a U.S. website or app, you are almost certainly banking with Barclays Bank PLC in the UK. That account is not FDIC insured. If you opened an account through a U.S. branch or were explicitly told you were opening an account with Barclays Bank Delaware, that account may have FDIC coverage — but this is rare for retail customers.
What happens if Barclays fails
If Barclays were to fail, the FSCS would step in to reimburse depositors. The FSCS typically pays out within seven working days for most claims, though complex cases can take longer. You would need to file a claim with the FSCS, not with the FDIC, and you would be dealing with UK authorities throughout the process.
For U.S. residents, this creates a practical problem: you would be filing a claim with a UK government agency while living in the United States. You may need to provide documents in UK format, communicate across time zones, and potentially deal with currency conversion delays. The FSCS does handle claims from overseas depositors, but the process is slower and more complicated than filing with the FDIC.
In practice, Barclays is a large, well-capitalized bank with a long history. The risk of failure is low. But if you are concerned about deposit protection or prefer to bank with an FDIC-insured institution, moving your money to a U.S. bank removes this uncertainty.
Comparing FSCS and FDIC coverage
| Feature | FDIC (U.S. banks) | FSCS (Barclays) |
|---|---|---|
| Coverage limit per depositor | $250,000 | £85,000 (~$107,000) |
| Joint account coverage | $250,000 per person | £85,000 per person |
| Typical payout time | 1 to 2 business days | 7 working days |
| Covers investment accounts | No | No |
| Claim filed with | FDIC (U.S. agency) | FSCS (UK agency) |
Alternatives if you want FDIC protection
If you want your savings covered by FDIC insurance, you need to move your money to a bank chartered in the United States. This includes large national banks like Chase, Bank of America, and Wells Fargo, as well as smaller regional banks and online banks. All of these hold FDIC insurance on deposits up to $250,000 per depositor per bank.
Online banks often offer higher interest rates than Barclays while still carrying full FDIC protection. Banks like Marcus, Ally, and Discover all hold FDIC insurance and typically pay more interest on savings accounts than traditional brick-and-mortar banks. If your main reason for banking with Barclays is the interest rate, comparing rates at FDIC-insured online banks may show you can earn more while gaining U.S. deposit protection.
If you have more than £85,000 at Barclays and want full coverage, you can split your money across multiple FDIC-insured banks — each bank covers up to $250,000, so spreading deposits across different institutions increases your total coverage.
Frequently Asked Questions
If I have $100,000 in a Barclays savings account, how much is protected?
The FSCS covers up to £85,000, which is roughly $107,000 at current exchange rates. Your full $100,000 would be covered. If you had £100,000 (roughly $127,000), only £85,000 would be protected and the rest would be at risk if Barclays failed.
Does Barclays have FDIC insurance on any of its accounts?
Barclays Bank Delaware, a U.S. subsidiary, holds FDIC insurance. However, most retail customers banking with Barclays through the main website or app are banking with the UK parent company and do not have FDIC coverage. Contact Barclays directly to confirm which entity holds your account.
What if I have a joint account at Barclays with my spouse?
Joint accounts are covered separately under FSCS rules. Each account holder gets their own £85,000 limit, so a joint account with two people is covered up to £170,000 total (£85,000 per person). This is the same as the FDIC rule for joint accounts.
Can I file an FDIC claim for a Barclays account?
No. The FDIC only handles claims for banks it insures. If Barclays failed, you would file a claim with the FSCS in the UK. The FSCS website has a claims process for overseas depositors, but it is slower than the FDIC process.
Is my money safe at Barclays even without FDIC insurance?
Your money is protected by FSCS insurance up to £85,000, which is a strong safety net. Barclays is a large, stable bank with decades of history. The practical risk of Barclays failing is very low. However, if you want the certainty of FDIC coverage or have more than £85,000 to deposit, moving to a U.S. bank removes this concern.