What is the FSCS protection limit?The Financial Services Compensation Scheme (FSCS) protects up to £85,000 per person per authorised institution in the UK. If your bank, building society, or credit union fails, the FSCS guarantees you will receive your deposits back up to this limit within 7 business days for most claims. Joint account holders are each protected up to £85,000 — giving a combined limit of £170,000. FSCS protection: £85,000 per person per authorised institution. Joint accounts: £170,000. Temporary high balance protection: up to £1 million for 6 months after certain life events. FSCS limits by account type
How are investments protected?Investments (shares, funds, ETFs) held in an ISA or general investment account are protected differently from cash. Client investments are held in a segregated nominee account separate from the platform business assets — meaning they should be returned to you in full even if the platform fails, regardless of the £85,000 FSCS cash limit. The £85,000 FSCS limit for investments covers any shortfall if the platform cannot return all assets. Shared banking licences: a critical riskSome banks and savings providers share a single banking authorisation — meaning the £85,000 limit applies to your combined balance across all brands under that licence, not per brand.
Temporary high balance protectionThe FSCS provides additional temporary protection of up to £1 million for up to 6 months for deposits resulting from qualifying life events, including: sale of a property, divorce or relationship dissolution settlement, insurance payout, redundancy payment, inheritance, and certain other one-off payments. Contact the FSCS if you have a temporary high balance to confirm eligibility. How to spread savings to maximise FSCS protection
Verdict Know your limits and spread large balances For most savers, the £85,000 limit is more than sufficient. For those with larger balances — from property sales, inheritance, or pension lump sums — spreading funds across separately authorised institutions protects the full amount. Always check the FSCS register before depositing significant sums with newer or less familiar providers. Frequently asked questionsIs the FSCS limit £85,000 or £85,000 per bank? It is £85,000 per person per authorised institution. If you hold £50,000 with Halifax and £50,000 with Bank of Scotland, your total protected amount is only £85,000 because both share a Lloyds Banking Group licence. With two genuinely separate banks, both balances are protected in full. Does the FSCS cover savings with challenger banks? Yes, provided the challenger bank holds its own FCA/PRA authorisation. Banks like Starling, Monzo, Atom, and Zopa are all separately authorised and carry their own £85,000 FSCS protection. Savings apps that hold money with a third-party bank are covered by that bank licence — check who the underlying institution is. How long does FSCS compensation take? For eligible deposits, the FSCS aims to pay compensation within 7 business days of a bank failure. The FSCS contacts eligible claimants directly — you do not need to apply in most cases. Is an ISA covered by FSCS? Yes. A Cash ISA is covered by FSCS up to £85,000 per institution, included within your overall £85,000 limit. Investments in a Stocks and Shares ISA are separately protected through client asset segregation rules, not the £85,000 cash limit. |
FSCS Protection Limit UK 2026: What Is Covered?
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