FSCS Protection: How Your Savings Are Covered
If a UK bank, building society or credit union fails, the Financial Services Compensation Scheme (FSCS) can step in. For eligible deposits, FSCS automatically compensates up to £120,000 per eligible person, per bank, building society or credit union, and aims to pay you within seven working days. You do not need to apply in advance for standard deposit protection, but you should understand how limits work if you hold large balances or several accounts.
What the limit covers
FSCS protection applies to money held in authorised deposit accounts with UK banks, building societies and credit unions that are covered by the scheme. The limit is £120,000 per eligible person, per firm — not per account.
According to FSCS, when a firm fails you should receive compensation within seven working days for covered deposits, without needing to lodge a claim first in most cases.
Protection is about the deposit taker’s authorisation, not the marketing name on your card or app. That distinction matters when one banking group runs several brands under a shared banking licence, which the next section explains.
Premium Bonds and other products on the savings hub are not bank deposits, so check how any product is protected before relying on FSCS cover.
Banking groups and shared licences
Accounts with banks in the same banking group that share a banking licence are treated as one bank for FSCS purposes. Protection applies at firm level and may be shared across brands that use the same authorisation.
If you spread money across two brands that are actually the same deposit taker under one licence, you still only have one £120,000 limit for your total balance with that authorisation. FSCS and the FCA Financial Services Register are the official places to see which entity holds your money and which firms share a licence.
Before moving large sums, use the FSCS protection checker and the register to confirm how your accounts are grouped.
Joint accounts
On a joint account, FSCS protects up to £120,000 per eligible person — each named holder has their own limit against that firm.
If you hold a joint account and a sole account with firms in the same banking group that share one licence, your share of the joint balance and your individual balance count together towards your one £120,000 limit with that group.
Temporary high balances
Sometimes you temporarily hold more than £120,000 for a short period after a qualifying life event. FSCS may protect a temporary high balance of up to £1.4 million for six months in those cases.
Qualifying events can include house sale proceeds, a redundancy payment, or certain benefits paid on retirement.
Spreading larger sums
If you need to keep more than £120,000 in cash deposits, FSCS explains that you can spread money among deposit takers with different Financial Services Register numbers (FRNs), keeping no more than £120,000 with each, so each pot benefits from its own limit up to £120,000.
When you switch banks, the Current Account Switch Service moves your balance to a new authorised firm on the date you choose. After a switch, recheck how your new account fits with your other deposits for FSCS purposes, especially if you keep savings elsewhere.
According to FSCS, it cannot protect e-money or payment services firms, and its deposit protection does not cover investments. If you are unsure, use the FSCS protection checker.
Frequently asked questions
How much does FSCS protect per person?
Up to £120,000 per eligible person, per bank, building society or credit union. Protection applies at firm level, so several brands under one banking licence may share one limit.
How quickly would I get my money if a firm failed?
FSCS says you should get your money within seven working days of a bank, building society or credit union failing.
How are joint accounts treated?
Joint accounts are protected up to £120,000 per eligible account holder. If you also have an individual account with a firm in the same banking group, both accounts share the one £120,000 limit for you.
What is a temporary high balance?
After certain qualifying life events, such as house sale proceeds, redundancy pay or some benefits paid on retirement, FSCS may protect up to £1.4 million for six months on top of the usual rules.
How can I protect more than £120,000?
You can spread money among deposit takers with different Financial Services Register numbers, keeping no more than £120,000 with each, so each pot has its own protection up to the limit.
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Disclaimer: This article is general information and not personal financial, tax or legal advice. Check your own situation with HMRC, GOV.UK or a regulated adviser.