How is the money in my account protected if Nickel fails?

If you have concerns about what would happen to your money if Nickel failed, you’ll be pleased to hear that the funds in your Nickel account are fully safeguarded.

How is the money in my Nickel account protected?

The money in your Nickel account is safeguarded as soon as you deposit it. That’s because Nickel puts your money in your account in a special holding account at BNP Paribas.
This account is used to protect your money – nothing more, nothing less. Nickel will never reinvest it or use it for other purposes.

What is a holding account?

A holding account is a sort of separate or ‘frozen’ account. We hold your money there to keep it completely separate from Nickels’ assets. This creates a clear distinction between Nickels’ funds and the money you deposit with us.
As a payment institution, Nickel is legally obliged to keep funds segregated in separate accounts at a registered bank. This makes sure your money is always protected and managed transparently. 

What would happen if Nickel failed?

Let’s start off by saying that the chances of Nickel failing are small. However, even in the worst-case scenario, your money is fully safeguarded. 
As your money is put in a separate holding account, it’s never mixed with Nickel’s assets. This means your money can be safely repaid to you regardless of Nickel’s financial situation. 

What would happen if BNP Paribas failed?

There’s an extra layer of protection on top of Nickel’s own safeguarding mechanisms. The holding accounts – managed by BNP Paribas in our case – are protected by the deposit guarantee scheme (DGS). This means that BNP Paris will make sure you get your money back, up to a maximum of €100,000 per person and per banking institution, if the bank fails.

Basically, you can use your Nickel account knowing your money is always safe! Your money is safeguarded as soon as you deposit it until you withdraw it. You can also access your money at any time, so that you can make payments and manage your banking with complete peace of mind.