# Safeguarding vs deposit insurance: where your money actually sits
> Deposit insurance is a government guarantee up to a limit. Safeguarding keeps client funds separate and out of a lending book. They are not the same thing.
Canonical: https://fasset.com/business/blog/safeguarding-vs-deposit-insurance/

AH

Ayman Hassen

Head of Business Banking, Fasset · September 2026

[Three nested rounded enclosures holding three separated circles]

Deposit insurance and safeguarding protect your money in two different ways, and treating them as the same thing is how a business ends up with a false idea of where it stands. Deposit insurance is a government-backed guarantee that pays out up to a set limit if a bank fails. Safeguarding is a rule that keeps client funds separate from a company's own money and out of its lending book entirely.

Fasset Business is a technology platform, not a bank. Client funds are held at licensed third-party institutions, separately from Fasset's own money. That sentence is doing a lot of work, so this guide takes it apart.

## What this guide will cover

- What deposit insurance covers, and the limits that apply market by market
- What safeguarding means in practice: separate accounts, separate ledgers, no lending
- Why a technology platform cannot offer deposit insurance and should not imply it
- What happens to safeguarded funds if the platform itself fails
- What happens if the licensed institution holding them fails
- Reconciliation: how often client balances are checked against the accounts behind them
- The questions to ask any provider, and the answers that should worry you
- Where Fasset client funds sit today

The full guide ships soon. Meanwhile the product is live, and the application runs entirely online.

## Open your account

The application runs entirely online. Or walk through the product first, with sample data and no signup.

- Open an account
- See the demo

Client funds are held separately from Fasset’s own.

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