# FSCS Protection

> What the Financial Services Compensation Scheme protects, the £120,000 limit, temporary high balances and how to check your money is covered.

Canonical page: [/banking-savings/fscs-protection](/banking-savings/fscs-protection/) · Last reviewed: 2026-08-22

The Financial Services Compensation Scheme (FSCS) protects your money if an authorised UK bank, building society or credit union fails. Here is what is covered and up to how much.

## Key information

- Deposits are protected up to £120,000 per person, per authorised firm
- The limit rose from £85,000 to £120,000 on 1 December 2025
- Temporary high balances can be protected up to £1.4 million for six months
- Protection is per banking licence — some brands share one licence

## What the FSCS protects

The FSCS is the UK’s statutory compensation scheme for customers of [authorised financial services firms](/investing-pensions/checking-a-financial-firm). If your bank, building society or credit union fails, the FSCS protects eligible deposits automatically — you do not usually need to apply in advance.

Protection covers up to £120,000 per eligible person, per authorised firm. This limit increased from £85,000 on 1 December 2025.

## Protection is per banking licence

The limit applies per authorised firm, not per brand or per account. Some brands are part of the same banking licence and share a single £120,000 limit between them. If you hold large balances, it is worth checking whether your providers share a licence so you do not unknowingly exceed the protected amount. You can [check a firm and its banking licence](/tools-calculators/firm-checker) to see which brands sit under the same licence.

## Temporary high balances

If you temporarily hold a much larger sum — for example after selling a home or receiving an inheritance or insurance payout — you may be protected up to £1.4 million for up to six months. This gives you time to move the money or spread it across providers.

## Your rights

- Eligible deposits are protected automatically up to the limit — you do not pay for FSCS cover.
- FSCS protection applies to authorised firms. Not every financial product is a protected deposit, so check the specific product.

## Official sources

- [Check your money is protected (FSCS)](https://www.fscs.org.uk/what-we-cover/)
- [FSCS — temporary high balances](https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/)
- [Check a firm on the FCA Register](https://register.fca.org.uk)

## Related

- [Savings Accounts](/banking-savings/savings-accounts/)
- [Current Accounts](/banking-savings/current-accounts/)
- [Checking a Financial Firm](/investing-pensions/checking-a-financial-firm/)

## Sources

- FSCS — [What we cover](https://www.fscs.org.uk/what-we-cover/) (accessed 2026-08-22)
- FSCS — [Deposit limit increase](https://www.fscs.org.uk/what-we-cover/banks-building-societies-credit-unions/deposit-limit-increase/) (accessed 2026-08-22)
- FSCS — [Temporary high balances](https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/) (accessed 2026-08-22)