If a UK-authorised bank, building society or credit union fails, the Financial Services Compensation Scheme (FSCS) can protect eligible deposits up to £120,000 per eligible person, per authorised firm for failures from 1 December 2025. The cap applies to the total eligible balance you hold across that firm’s accounts and brands—not to each account separately.
This guide reflects FSCS guidance checked on 5 October 2026. The date of a firm’s failure matters: the standard limit was £85,000 for failures from 1 January 2017 through 30 November 2025.
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What FSCS deposit protection covers
FSCS is the UK’s statutory compensation scheme for customers of authorised financial firms. For this guide, the relevant protection is for eligible deposits in products such as current accounts, savings accounts and cash ISAs. The standard limit is £120,000 per eligible person, per authorised firm for a bank, building society or credit union failure on or after 1 December 2025. FSCS explains its bank and savings protection.
The limit rose from £85,000 on 1 December 2025. The previous £85,000 limit applied from 1 January 2017 to 30 November 2025, so a claim relating to an earlier failure should be assessed using the limit in force at the time. FSCS announced the change.
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FSCS protection is not a promise that every financial product is covered under the same rules. Investments, insurance, pensions and other regulated services have separate eligibility rules and limits; check the relevant FSCS product guidance if your money is not held as a bank deposit. See the FSCS overview of what it covers.
How the £120,000 limit is calculated
FSCS calculates protection by eligible person and authorised firm. Add together your eligible deposits held with that firm; opening more accounts there does not create extra allowances. Likewise, different banking brands can share one authorisation, so their balances may need to be combined. The FCA Financial Services Register and FSCS’s bank and savings checker can help identify the firm and linked brands.
| Situation | How protection is counted |
|---|---|
| Several accounts with one authorised firm | Your eligible balances across those accounts count toward one £120,000 limit. |
| Different brands under one authorisation | Balances across the brands are combined for each eligible person. FSCS gives HSBC and first direct as an example of brands sharing a licence; check the current arrangements in the register or checker. |
| Two people with a joint account | Each eligible named holder can have up to £120,000 protection. A joint account alone can therefore have up to £240,000 covered if both holders are eligible and have no other deposits with that firm. |
| Personal and sole-trader accounts | They share the individual’s limit; a sole-trader account does not create a separate person or allowance. |
| Limited company or LLP account | The entity is legally separate from its owners and may qualify separately, subject to FSCS eligibility rules. |
Joint protection is not an extra allowance detached from each holder’s other savings. Each person’s share of the joint deposit is considered with that person’s other eligible deposits at the same firm. FSCS sets out the rules for joint accounts and business deposits.
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Check the bank, brand and account arrangement
A familiar app or brand name alone does not establish which firm holds your money. Protection depends on the authorised firm and whether the deposit arrangement is eligible. This matters particularly when an account is offered through an intermediary, cash platform, marketplace, nominee or client account: the beneficial owner may need to be identifiable, and the platform’s own brand does not determine coverage.
- Identify the legal firm that holds the deposit, using the account terms or provider’s disclosures rather than relying only on the app name.
- Search for the firm on the FCA Financial Services Register to check its authorisation and trading names.
- Use the FSCS bank and savings checker to check protection and whether brands share an authorisation.
- Add your eligible balances at that firm, including your share of joint deposits, and compare the total with your individual limit.
- If the money is held through a platform, nominee or unusual business arrangement, check the specific FSCS eligibility rules for that structure.
FSCS says customers do not have to live in the UK for eligible deposits to be protected; the bank or building society must be UK-authorised. See FSCS eligibility guidance.
When a temporary high balance may receive extra protection
Some short-term deposits arising from specified life events can qualify for temporary high balance (THB) protection. FSCS’s February 2026 leaflet describes protection of up to £1.4 million for up to six months for qualifying events. This is conditional, not a general higher savings allowance.
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Events listed by FSCS
The leaflet includes money connected with buying or selling a main residence, marriage or civil partnership or its dissolution, redundancy or unfair dismissal, insurance benefits, wrongful conviction, retirement benefits, death benefits, compensation for a person’s death, and a legacy from a deceased person’s estate. Special conditions apply: for example, the property rules concern a main residence, not a second home, holiday home or buy-to-let property, and general savings set aside for a future property purchase do not qualify on that basis.
For qualifying disability or incapacity benefits and personal injury compensation, the leaflet says protection may be unlimited for up to six months, subject to its conditions. Read the FSCS temporary high balance leaflet.
Timing and evidence
The six-month period is tied to when the funds become legally yours or are first credited, as applicable under the rules. Moving the money does not restart the clock. To claim protection above £120,000, you may need to contact FSCS and provide written evidence that the deposit qualifies. Eligibility depends on the event, the dates and the source of funds, so check the current FSCS temporary high balance guidance for your circumstances.
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What happens after a bank failure
FSCS says it automatically compensates eligible depositors when an authorised bank, building society or credit union fails. It says most straightforward deposit compensation is paid within seven working days. That is not a guarantee for every claim: some complex cases, including certain temporary high balance claims and cases where the beneficial owner is unclear, can take longer—up to three months according to FSCS guidance. See FSCS information on deposit compensation.
If your balance exceeds the standard limit because of a potential qualifying life event, keep documents showing where the money came from and when you received it. These may be needed to establish temporary high balance eligibility.
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