If a UK bank or building society fails, the FSCS can step in to protect your deposits. Knowing how the limit works helps you keep more of your money covered.
Summary
- The FSCS protects eligible deposits at UK-authorised banks, building societies and credit unions if the firm fails.
- The deposit limit is currently £120,000 per eligible person, per authorised firm.
- Some brands share a single banking licence, which means they share one limit.
- E-money accounts aren’t covered by the FSCS in the same way; they rely on safeguarding instead.
The Financial Services Compensation Scheme, or FSCS, is the UK’s safety net for customers of authorised financial firms. For savers, its most important job is protecting deposits if a bank, building society or credit union fails. The protection is automatic and free, but it has limits worth understanding.
The deposit limit
- Eligible deposits are protected up to £120,000 per eligible person, per authorised firm.
- The limit was raised from £85,000 on 1 December 2025.
- The protection covers current accounts, savings accounts and cash ISAs held with UK-authorised deposit takers.
Bear in mind
Limits can change. The FSCS website has a tool to check whether your bank or building society is protected, and it shows the current limit.
One firm, one limit
The limit applies per authorised firm, not per brand or per account. Some banking brands share a single banking licence, and in that case all your money across those brands counts towards one limit.
| Situation | How the limit applies |
|---|---|
| Two accounts at the same bank | Added together under one limit |
| Two brands on the same banking licence | Added together under one limit |
| Accounts at two separately authorised banks | Each has its own limit |
| A joint account held by two people | Each holder is protected up to the limit |
Temporary high balances
Life events can briefly push your balance well above the usual limit, for example after selling a home or receiving an inheritance. The FSCS offers higher protection for some temporary high balances, for a limited period. If this applies to you, check the FSCS guidance and keep evidence of where the money came from.
What isn’t covered
- E-money accounts: money held by an e-money institution isn’t a deposit. These firms must safeguard customer funds instead, which works differently. Our comparison of digital banks and high street banks explains the difference.
- Investments: shares and funds can fall in value, which isn’t something the FSCS covers. Separate FSCS rules apply if an investment firm fails.
- Firms outside the UK system: accounts with banks that aren’t authorised in the UK may be covered by another country’s scheme, or not at all.
Top tip
If your savings exceed the limit at one firm, spreading them across separately authorised providers keeps more of your money protected.
How a payout works
If a firm fails, the FSCS usually pays eligible depositors automatically, often within days. You don’t normally need to make a claim, but keeping your contact details up to date with your bank helps.
The bottom line
Check that your provider is authorised, know which brands share a licence and keep each firm’s balance within the limit where you can. For choosing where to hold your savings, see our guide to easy-access and fixed-rate accounts, and if you’re comparing providers, building societies and banks are protected in the same way.
Questions readers ask
How much of my savings does the FSCS protect?
Eligible deposits are protected up to £120,000 per person, per authorised bank, building society or credit union. The limit rose from £85,000 on 1 December 2025. Check the FSCS website for the latest figure.
Are joint accounts covered separately?
Each eligible account holder is protected up to the limit, so a joint account held by two people can be covered up to twice the individual limit in total.
What happens if I temporarily hold a large sum?
Certain temporary high balances, such as money from a house sale or an inheritance, can have higher protection for a limited period. The FSCS website explains which life events qualify.
How long does the FSCS take to pay out?
The FSCS aims to pay most depositors quickly, typically within days of a bank failing. Payouts are automatic in many cases, without a claim.
This guide is general information, not financial advice. Rules, rates and allowances can change, so check the latest details with the provider, GOV.UK or the Financial Conduct Authority before making decisions. For advice on your own circumstances, speak to an FCA-authorised financial adviser.