The FSCS protection limit for eligible bank and savings deposits is 120,000 pounds per person, per authorised firm, since 1 December 2025. This limit applies per firm, not per account, so savers should check their total deposits with each authorised firm to ensure full protection.
TL;DR · LAST REVIEWED 21 AUGUST 2026
- The FSCS deposit protection limit is 120,000 pounds per person, per authorised firm, effective 1 December 2025.
- Joint account holders each get the limit, giving a combined 240,000 pounds per firm.
- Temporary high balances from life events are protected up to 1.4 million pounds for six months.
- Investment protection remains at 85,000 pounds and is separate from deposit protection.
- To stay fully protected, spread deposits across separately authorised firms.
FSCS limits by protection type
| Protection type | Limit | Notes |
| Bank and savings deposits | £120,000 per person, per firm | Rose from £85,000 on 1 December 2025 |
| Joint accounts | £240,000 | £120,000 per account holder |
| Temporary high balances | £1.4 million for up to 6 months | Life events such as a house sale or inheritance |
| Cash ISA | £120,000 | Counts within the deposit limit, not on top |
| Investments (S&S ISA, GIA, SIPP cash) | £85,000 per person, per firm | Unchanged; covers firm failure, not market losses |
| General insurance (home, travel) | 90% of the claim, no upper limit | Compulsory and long-term cover is 100% |
Brands that share one FSCS limit
| Banking group | Brands sharing one FSCS limit |
| Lloyds Banking Group | Lloyds Bank, Halifax, Bank of Scotland |
| NatWest Group | NatWest, Royal Bank of Scotland, Ulster Bank (NI) |
| Virgin Money | Virgin Money, Clydesdale Bank, Yorkshire Bank |
| HSBC Group | HSBC UK, First Direct, M&S Bank |
| Santander | Santander UK (one licence) |
Sources: FSCS; PRA. Deposit limit rose to £120,000 on 1 December 2025. Verify your provider on fscs.org.uk.
KEY FACTS
- 120,000 pounds is the FSCS deposit protection limit per person, per authorised firm since 1 December 2025.
- The limit rose from 85,000 pounds, where it had stood since 2017.
- Joint account holders are each protected, giving a combined limit of 240,000 pounds per firm.
- Temporary high balances are protected up to 1.4 million pounds for up to six months.
- FSCS investment protection remains at 85,000 pounds per person per firm.
The current FSCS deposit limit
The Financial Services Compensation Scheme (FSCS) protects eligible deposits up to 120,000 pounds per person, per authorised firm. This higher limit has applied since 1 December 2025, replacing the previous 85,000 pounds cap that had been in place since 2017. The change followed a review by the Prudential Regulation Authority.
Protection is automatic, meaning savers do not need to apply or register to be covered. In most cases, if an authorised bank, building society or credit union fails, the FSCS pays out compensation within seven days. The limit covers the total balance held with that firm across all eligible accounts, including current accounts, savings accounts and cash ISAs.
Cash ISAs count within the 120,000 pounds limit rather than receiving a separate allowance. Any amount held above the limit with a single authorised firm is not protected, so savers with larger sums need to consider how their money is distributed across different firms.
Joint accounts and temporary high balances
Joint account holders are each protected up to 120,000 pounds, giving a combined limit of 240,000 pounds per authorised firm. Temporary high balances, such as the proceeds of a house sale or an inheritance, receive extra protection up to 1.4 million pounds for six months.
The temporary high balance protection applies from the date the money is deposited and lasts for six months. This window is designed to give savers time to spread a large sum across multiple firms without losing cover during the process. The 1.4 million pounds limit is per person, per authorised firm, and joint account holders each benefit from it.
Life events that can trigger temporary high balance protection include property sales, inheritance, divorce settlements, redundancy payments and certain insurance payouts. The FSCS does not require advance notice of these deposits, but savers should keep records in case a claim becomes necessary.
Why the firm, not the brand, is what matters
The 120,000 pounds limit applies per authorised firm, not per account or per brand. This means that if two or more brands share a single banking licence, deposits held with any of those brands count towards one combined limit.
Many well-known high street names operate under a parent company's banking licence. For example, a saver holding 70,000 pounds with one brand and 60,000 pounds with another brand under the same licence would have 130,000 pounds with one firm, leaving 10,000 pounds unprotected.
The table below lists common banking groups and the brands that share their authorisation. Savers should check this before opening accounts with multiple brands that appear different but are part of the same group.
| Banking group | Brands sharing one licence |
|---|---|
| Example Group A | Brand One, Brand Two, Brand Three |
| Example Group B | Brand Four, Brand Five |
| Example Group C | Brand Six, Brand Seven, Brand Eight |
The FSCS bank and savings protection checker allows savers to verify whether a provider holds its own authorisation or operates under another firm's licence. This tool is the definitive way to confirm how much protection applies to a specific deposit.
How deposits differ from investment protection
Deposit protection is 120,000 pounds per person per firm, while investment protection is separate and remains at 85,000 pounds per person per firm. Investment cover applies only to firm failure, not to falls in the market value of your investments.
If an authorised investment firm collapses and cannot return your assets, the FSCS may compensate you up to 85,000 pounds. This does not protect against poor performance, market downturns or investment losses. The value of your investments can go down as well as up, and the FSCS does not step in for those losses.
The two limits operate independently. Holding both deposits and investments with the same firm means each type is assessed against its own limit. For details on how investments, pensions and insurance policies are covered, the full FSCS explainer provides the relevant information.
How to spread savings to stay fully protected
To remain fully protected, keep the balance with any single authorised firm below 120,000 pounds. Use banks that hold separate authorisations rather than brands that share a licence, and check each provider on the FSCS protection checker before depositing large sums.
For savers with more than 120,000 pounds, the simplest approach is to split funds across two or more authorised firms. Each firm provides its own separate limit, so holding 60,000 pounds with three independently authorised banks gives full protection across the total.
When choosing where to place money, confirm that each provider is separately authorised. A quick check on the FSCS website prevents the common mistake of assuming two brands are independent when they share a licence. For temporary high balances, the six-month window provides time to arrange a spread across firms without losing cover in the interim.
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DISCLAIMER
This article is for general information only and does not constitute financial advice. FSCS limits and rules can change; check the primary source at fscs.org.uk before relying on these figures.
Frequently asked questions
What is the FSCS protection limit?
The FSCS protects eligible bank and savings deposits up to 120,000 pounds per person, per authorised firm, a limit that rose from 85,000 pounds on 1 December 2025.
How much is protected on a joint account?
Joint account holders are each protected, giving a combined limit of 240,000 pounds per authorised firm.
Are temporary high balances protected?
Yes; sums from life events such as a house sale or inheritance are protected up to 1.4 million pounds for up to six months.
Is investment protection also 120,000 pounds?
No; FSCS investment protection is separate and stays at 85,000 pounds per person, per firm, covering firm failure rather than market losses.
How do I stay fully protected above 120,000 pounds?
Spread money across banks that hold separate authorisations, keeping each firm balance below 120,000 pounds, and check providers on the FSCS checker.
SOURCES
- FSCS: deposit limit increase to 120,000 pounds – accessed 2026-08-21
- Bank of England / PRA: FSCS deposit limit confirmed at 120,000 pounds – accessed 2026-08-21
- FSCS: what we cover – accessed 2026-08-21
