If a UK-authorised bank, building society or credit union fails on or after 1 December 2025, the Financial Services Compensation Scheme (FSCS) can protect eligible deposits up to £120,000 per eligible person, per authorised firm. It is a combined limit across accounts under that firm’s banking licence—not a separate allowance for each account or brand.
This guide reflects FSCS guidance checked on 5 October 2026. For a failure before 1 December 2025, the applicable standard limit was £85,000.
What FSCS deposit protection covers
FSCS is the UK’s statutory compensation scheme for customers of authorised financial firms. For deposits, it can compensate eligible customers if their authorised bank, building society or credit union fails. FSCS describes covered deposits as money held in accounts such as current accounts, savings accounts and cash ISAs. See FSCS bank and building society protection.
The £120,000 limit took effect on 1 December 2025. From 1 January 2017 through 30 November 2025, the standard limit was £85,000. The date of the firm’s failure matters when determining which limit applies. See FSCS’s announcement of the limit change.
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This is a deposit limit, not a single limit for every financial product FSCS covers. Investments, insurance, pensions and other regulated services have different eligibility rules and compensation limits. If your money is in one of those products rather than a bank deposit, check the relevant FSCS coverage category.
How the £120,000 limit is counted
Multiple accounts at the same firm
Add together your eligible deposits across all accounts held with the same authorised firm. Opening another savings or current account at that firm does not create another £120,000 allowance.
Brands that share a banking licence
A brand name is not necessarily a separate authorised firm. If two brands operate under one banking licence, eligible deposits across both are aggregated for each person. FSCS gives HSBC and first direct as an example of brands sharing a licence; check the current arrangement rather than relying on a brand name. Use the FSCS bank and savings checker and the FCA Financial Services Register to identify the firm and check its trading names.
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Joint accounts
Each eligible named account holder can receive protection up to their own £120,000 limit at that firm. Their other eligible deposits there—including their share of joint deposits—also count toward their individual limit. A two-person joint account with no other deposits at the firm can therefore have up to £240,000 protected in total, subject to each holder being eligible.
Personal and business accounts
A sole trader is not separate from the individual for this purpose: personal and sole-trader deposits at the same firm share that person’s limit. A limited company or limited liability partnership is a separate legal entity and may qualify for its own protection, subject to eligibility. If a business has multiple owners, or funds are held through a trust, nominee or client account, do not assume the standard individual calculation applies; check the specific ownership arrangement with FSCS.
Deposits held through a platform or intermediary
Protection can depend on who legally holds the deposit and whether FSCS can identify the beneficial owner. For cash platforms, marketplaces, nominee accounts and client-money arrangements, check the underlying authorised firm and ownership records. The platform or app’s brand alone does not establish which protection applies.
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When a temporary high balance may qualify
Some unusually large deposits linked to specified life events can qualify for temporary high balance (THB) protection above the standard limit. FSCS’s February 2026 leaflet describes protection of up to £1.4 million for up to six months for qualifying events. The conditions, qualifying amount and time period matter; this is not a general higher limit for anyone with a large balance. See the FSCS customer leaflet and its temporary high balance guidance.
Examples of qualifying events
The leaflet lists examples including money connected to 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 an inheritance from a deceased person’s estate. Property-related rules are specific: a second home, holiday home, buy-to-let property or general savings set aside for a future property purchase do not qualify under the leaflet’s description.
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For personal injury compensation and disability or incapacity benefits, the leaflet says protection may be unlimited for up to six months, subject to the stated conditions. Do not treat this as automatic: check whether the source and circumstances of the funds meet FSCS’s rules.
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When the six-month period starts and what evidence is needed
The period is tied to when the funds become legally yours or are first credited, as applicable under FSCS rules. Moving the money to another account does not restart the clock. If you seek protection above £120,000, you may need written evidence that the deposit qualifies; for a THB claim, FSCS may require you to contact it and provide supporting documents.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to check whether your money is protected
- Identify the legal firm holding the deposit. Look beyond the bank, app or savings-platform brand to the bank or building society that actually holds the money.
- Check authorisation. Search for the firm and its trading names on the FCA Financial Services Register, then use the FSCS bank and savings checker to check protection and shared licences.
- Aggregate eligible balances. Add your accounts held under that authorised firm, including balances with brands that share its licence.
- Calculate by eligible account holder. For a joint account, account for each holder’s share and that person’s other deposits at the same firm. Do not treat a sole-trader account as a separate person’s allowance.
- Check for a qualifying temporary high balance. If a life event has left you with more than £120,000, confirm the event, eligible funds, start date, remaining time and evidence requirements in FSCS’s current guidance.
How compensation is paid and how long it takes
FSCS says it will automatically compensate 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 case: complex claims—including some temporary high balance cases and cases where the beneficial owner is unclear—can take longer, with FSCS saying they may take up to three months.
Where you are claiming temporary high balance protection, or your account structure makes the beneficial owner unclear, be ready to contact FSCS and provide evidence. The relevant guidance is available from FSCS’s bank and building society information.
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FSCS says a customer does not have to live in the UK for eligible deposits to be protected. The bank or building society must be UK-authorised, and the deposit and account arrangement must meet the scheme’s eligibility rules.
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