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Consumer Credit

Banking & Savings

FSCS Protection

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.

Last reviewed 22 August 2026Based on 3 official sourcesHow we write our guides

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
On this page

What the FSCS protects

The FSCS is the UK’s statutory compensation scheme for customers of authorised financial services firms. 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 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 & protection

  • 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.

General information, not personal advice

Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.

Sources

We checked this page against these official and authoritative sources.

  1. FSCS, What we cover (opens in a new tab). Accessed 22 Aug 2026.
  2. FSCS, Deposit limit increase (opens in a new tab). Accessed 22 Aug 2026.
  3. FSCS, Temporary high balances (opens in a new tab). Accessed 22 Aug 2026.
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