What is the FSCS limit in the UK in 2026?

From 1 December 2025, the Financial Services Compensation Scheme (FSCS) limit increased from £85,000 to £120,000 per person per authorised institution (or £240,000 for joint accounts). This means if a UK-authorised bank, building society or credit union fails, you are protected for up to £120,000 of deposits held with that institution. The limit had been £85,000 since 2017.

What does FSCS cover in the UK?

FSCS covers: deposits in UK-authorised banks, building societies and credit unions (up to £120,000); investments through UK-authorised investment firms (up to £85,000); mortgage advice and broking (up to £85,000); insurance products (100% for compulsory insurance; 90% for most other insurance); and pension and retirement products (up to £85,000). FSCS does not cover: Revolut standard accounts (not FSCS-authorised for deposits); NS&I (covered by HM Treasury guarantee instead); and most investments in foreign-authorised firms.

What is temporary FSCS high balance protection?

If you have a temporarily high cash balance due to a specific life event — such as selling a home, receiving an inheritance, a court settlement, a pension lump sum, or certain insurance payouts — you may be entitled to £1,000,000 of FSCS protection for up to 6 months from the date of receipt. You must inform your bank of the reason for the high balance and the source of funds. This protection allows you to safely park a large sum while deciding what to do with it.

FSCS Protection UK 2026: £120,000 Limit (from Dec 2025)

Q: How do I protect savings above £120,000?

To protect savings above £120,000: spread across multiple FSCS-authorised institutions (each provides £120,000 protection separately); use NS&I (Premium Bonds, savings bonds, income bonds) — government-backed, unlimited protection; use temporary high balance protection (up to £1,000,000 for 6 months after specific life events such as selling a property or receiving an inheritance — inform your bank). Always check that two institutions are truly separate (e.g. Halifax and Bank of Scotland are both part of Lloyds Banking Group — share the £120,000 limit).

FSCS Protection UK 2026: New £120,000 Limit Explained

Chandraketu Tripathi

Finance Editor, Kaeltripton

Published 4 Apr 2026

Last reviewed 18 Apr 2026

✓ Fact-checked

The FSCS limit rose from £85,000 to £120,000 per person per institution on 1 December 2025 — the first increase in over 8 years. Here's everything you need to know about what's covered and how to maximise your protection. Updated December 2025 — £120,000 Limit

FSCS Limits — What's Protected in 2026

Product Type	FSCS Limit	Key Notes
Bank/building society deposits	£120,000 per person per institution	Increased from £85,000 on 1 Dec 2025
Joint accounts	£240,000 per account	Effectively £120,000 per person
Investment products	£85,000 per person per firm	Unchanged
Mortgage advice	£85,000 per claim	Unchanged
Insurance (compulsory, e.g. motor)	100%	Full protection
Insurance (most other)	90% with no upper limit	Unchanged
Pension and retirement	£85,000	Unchanged
NS&I	Unlimited	HM Treasury guarantee — not FSCS
Revolut (standard UK)	Not FSCS-covered	Safeguarded funds — different protection

Source: MoneySavingExpert FSCS guide; FSCS.org.uk. The £120,000 limit applies per authorised institution, not per account. Multiple accounts at the same bank (current account + savings account + ISA) all share a single £120,000 limit.

Banking Groups — Critical for Spreading Risk

If You Bank With...	Same Banking Group As...	Combined FSCS Limit
Halifax	Bank of Scotland; Lloyds Bank	£120,000 total across all three
NatWest	Royal Bank of Scotland (RBS)	£120,000 total across both
HSBC	First Direct; M&S Bank (savings)	£120,000 total across all
Santander	Santander (all accounts)	£120,000 per person total
Barclays	Barclays (all accounts)	£120,000 per person total
Monzo	Separate — standalone bank	£120,000 own protection
Starling	Separate — standalone bank	£120,000 own protection

This is the most critical point for large savers: two bank brands in the same group share a single FSCS limit. Always check bankaccountswitch.co.uk or FSCS.org.uk to verify which banks share a group limit before spreading savings.

How to Protect Savings Above £120,000

Strategy	Protection Level	Best For
Spread across multiple separate banking groups	£120,000 per group	Most savers with £120k-£500k
NS&I Premium Bonds (up to £50,000)	100% (HM Treasury)	All savers — especially higher-rate taxpayers
NS&I savings bonds and income bonds	100% (HM Treasury)	Check NS&I for current rates
Temporary High Balance claim	Up to £1,000,000 for 6 months	Recent property sale; inheritance; settlement
ISA balances	Count within £120,000 limit	ISA is just a wrapper — underlying bank limit applies

Revolut — Not FSCS: What This Means Practically

Revolut's standard UK accounts are not covered by FSCS. Revolut safeguards customer funds by holding them in ring-fenced accounts at reputable banks, separate from Revolut's own corporate funds. If Revolut itself failed: your funds should be ring-fenced and returneable — but the process would be slower and less certain than FSCS. Some Revolut savings accounts held with partner banks may be FSCS-protected in those partner banks' names — check the specific account terms. The practical advice: do not keep large balances in Revolut's standard account. Use it as a spending/travel account and keep main savings in FSCS-protected institutions.

KAELTRIPTON VERDICT

The FSCS limit at £120,000 per person per institution (from December 2025) provides meaningful protection for most savers. Key actions: check which banking groups your accounts belong to (Lloyds, Halifax and Bank of Scotland share one limit); spread large savings across separate groups; use NS&I for amounts above what FSCS covers (unlimited HM Treasury guarantee); and if you have a temporarily large sum, invoke the temporary high balance protection up to £1,000,000.

£120,000 Per Person Per Institution — From 1 Dec 2025

Q: What is the FSCS limit UK 2026?

A: £120,000 per person per authorised institution. Increased from £85,000 on 1 December 2025. Joint accounts: £240,000.

Q: Does FSCS cover Revolut?

A: No — Revolut standard accounts are not FSCS-covered. Safeguarded funds only. Some savings via partner banks may have FSCS protection — check terms.

Q: How do I protect savings above £120,000?

A: Spread across multiple separate banking groups; use NS&I (unlimited HM Treasury guarantee); use temporary high balance protection if applicable.

Q: Do Halifax and Lloyds share the FSCS limit?

A: Yes — both are part of Lloyds Banking Group. Combined FSCS limit is £120,000 per person across all accounts in the group.

This article is for informational purposes only. Savings rates change frequently — always check current rates before opening an account. All institutions mentioned are FCA-regulated. FSCS protection £120,000 per person per institution from December 2025. Figures verified April 2026.

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