FSCS compensation limits: how much of your money is protected

The Financial Services Compensation Scheme (FSCS) pays you back if a UK-authorised financial firm fails and cannot return your money. For savings, it protects up to £120,000 per person per bank, building society or credit union, counting brands that share a banking licence as one firm. That limit applies to firms that fail on or after 1 December 2025; before then it was £85,000. Other products have different limits: £85,000 for investments, advice and SIPP operators, and 100% or 90% of the claim for insurance.

FSCS limits at a glance

Limits for firms failing today. Deposit and insurance limits are set by the Prudential Regulation Authority (Depositor Protection Part, Policyholder Protection Part); the others by the Financial Conduct Authority in COMP 10.2.3R.

The limit that applies is the one in force on the date the firm fails, so a claim against a firm that failed earlier is paid under the limits of that time. FSCS lists the older figures on its What we cover page.

Savings: £120,000 per person per banking licence

Rule 4.2 of the PRA's Depositor Protection Part reads: "The maximum compensation sum payable for the aggregate eligible deposits of each depositor is £120,000". The PRA confirmed the figure in policy statement PS24/25 (November 2025), having consulted on £110,000 in CP4/25. It raised the limit to £120,000 instead after consultation feedback and later inflation data, and said the new limits "will apply from 1 December 2025 (for firm failures occurring on or after that date)". In line with the Deposit Guarantee Scheme Regulations 2015, HM Treasury approved the change.

• All accounts with one firm are added together. Rule 5.3 applies the limit to the aggregate eligible deposits a depositor holds with the same firm "irrespective of the number of accounts, the currency" they are held in. Current accounts, savings accounts, fixed-rate bonds and cash ISAs all count: FSCS's leaflet describes a deposit as "money in accounts such as current and savings accounts, including cash ISAs".
• Worked example from the PRA's own information sheet. With £80,000 in a savings account and £50,000 in a current account at the same firm, your total is £130,000: FSCS would pay £120,000 and you could lose £10,000 (PS24/25 Appendix 1, Annex 1).
• Shared banking licences. One authorised firm can trade under several brand names. FSCS treats them as one bank, so the £120,000 limit covers your combined balance across every brand on that licence, not each brand separately (FSCS: banking licences). Group ownership is not the test: two banks in the same group with separate licences each have their own limit. FSCS notes that building societies and credit unions often pick up extra trading names by acquiring smaller firms, so check each provider on the FCA Register or the FSCS checker rather than relying on a list.
• Businesses. The PRA's information sheet says eligible deposits in business accounts "are treated as if made by a single depositor", so a business account is protected up to £120,000. FSCS's leaflet says that for deposits, large companies can also claim, "although some exclusions may apply".
• Who is excluded. Rule 2.2(4) of the Depositor Protection Part makes some deposits ineligible whoever holds them, including deposits by other banks, most financial institutions and investment firms, insurers, investment funds, most pension funds (personal, stakeholder and small-employer occupational schemes are still covered) and public authorities other than small local authorities.
• Payout is automatic. For ordinary deposits FSCS says "You don't need to do anything" and compensates you automatically. Rule 9.3 sets the payment period as seven business days from the day after the failure; the PRA's information sheet says payments may take longer in exceptional circumstances, for example a temporary high balance.
• Old paperwork may still say £85,000. PS24/25 gave banks until 31 May 2026 to update their FSCS information materials, so a leaflet or statement from before then can show the old figure. What counts is the rule in force when a firm fails.

If you hold more than £120,000 with one firm, the unprotected part is the excess. Spreading money across firms with separate licences gives each its own limit; our savings accounts guide explains the account types and how their interest is taxed.

Joint accounts

The PRA defines a depositor as "the holder or, in the case of a joint account, each of the holders". Each holder has their own £120,000 limit, so a joint account with two holders can be protected up to £240,000 (the PRA's information sheet uses exactly this example). Rule 5.4 says each holder's share is considered separately and, "in the absence of contrary provision", the account is split equally between them. The exception is rule 5.5: an account held by members of a business partnership, association or similar grouping without legal personality is "treated as if made by a single depositor", so the partners share one £120,000 limit.

Your share of a joint account is added to anything you hold alone with the same firm. FSCS warns that if you have an individual account and a joint account with the same firm (or with brands sharing its banking licence), the £120,000 limit applies across both, not to each (FSCS: banks, building societies and credit unions).

If a joint holder dies and their share passes automatically to another holder, rule 4.4 temporarily increases the limits: the cover that would have belonged to the deceased is divided between the people entitled to the money, for six months beginning with the date of death.

Temporary high balances: up to £1.4 million for 6 months

Some life events put a large sum in a bank account for a short time. Under rule 4.3, the maximum compensation for a temporary high balance is £1.4 million, "save that no limit shall apply" where it arises from a payment for personal injury or incapacity. Rule 4.2 says that "additional compensation may be payable" beyond the £120,000 limit in these cases. The cap was £1 million for failures before 1 December 2025 (PS24/25).

Rule 10.2 lists what qualifies. The part of the balance above £120,000 must be money that is:

• deposited to buy your only or main home, the proceeds of selling it, or the proceeds of an equity release on it (the PRA defines "private residential property" as property that was, is or is intended to become the depositor's "only or main residence", so a second home or buy-to-let does not qualify);
• paid out under an insurance policy;
• compensation for personal (including criminal) injury, wrongful conviction or unfair dismissal;
• State benefits paid for disability or incapacity;
• connected with your redundancy (voluntary or compulsory), marriage or civil partnership, divorce or dissolution, or benefits payable on retirement;
• benefits payable on death, compensation for a person's death, or a legacy or other distribution from an estate;
• held by personal representatives to administer a deceased person's estate; or
• otherwise serving a social purpose under UK law linked to those life events, or to buying or selling an only or main residence that is not freehold, heritable or leasehold property.

Protection runs for 6 months from the later of the date the money is first credited to the account and the date it first becomes legally transferable to you (rule 10.7). It is not paid automatically: under rule 10.3A the FSCS writes to you after a failure, and you must send a written application with evidence linking the money to the event by the date it gives. Rule 10.8 says FSCS must pay a temporary high balance claim within three months of the failure, unless one of the deferral rules applies.

Investments: £85,000 per person per firm

For protected investment business, the table in FCA COMP 10.2.3R sets cover at 100% of the claim up to £85,000. FSCS applies that limit where the firm failed after 1 April 2019; for failures between 1 January 2010 and 31 March 2019 it was £50,000 (FSCS: investments). COMP 10.2.2G says the limit is per category of claim against each firm: two investment claims of £70,000 and £20,000 against the same firm receive £85,000 in total.

FSCS covers both a failed provider and a failed adviser: its investments page says you may be able to claim if you have an investment, or were advised to invest, and "the provider or adviser has gone out of business". Its leaflet lists the kinds of loss: a failed firm that cannot return your investments or money owed, or loss caused by bad or misleading advice, negligent management, misrepresentation or fraud. It does not pay because an investment fell in value: FSCS says "We can't accept any claims that are for poor investment performance". A Stocks and Shares ISA is covered on this investment basis, not by the deposit limit; see the ISA types guide.

Pensions

• Pension from a UK insurer. Where the pension is a contract of long-term insurance, FSCS covers 100% with no upper limit (PRA Policyholder Protection 17.2(2)). FSCS gives annuities as an example and says the majority of personal and stakeholder pensions from UK-regulated insurers qualify, but SIPPs are typically not; ask your provider which applies to your plan.
• SIPP operator fails. Up to £85,000 per eligible person per firm.
• Bad pension advice, for example advice to transfer, where the adviser has failed: up to £85,000. If the adviser is still trading, complain to the Financial Ombudsman Service instead.
• An investment inside a pension fails. Where the UK-regulated provider of an investment held in a personal pension or a defined contribution occupational scheme fails, FSCS may pay up to £85,000 per scheme member.
• Workplace (occupational) schemes. FSCS says it cannot protect occupational pension schemes if they fail; these may be protected by the Pension Protection Fund.

Source for this section: FSCS: pensions (failures after 1 April 2019).

Insurance: 100% or 90%, with no cap

If a PRA-regulated insurer fails, rule 17.2 of the PRA's Policyholder Protection Part sets the level of cover, and in each case "there is no upper limit on the amount that can be paid":

• 100% for long-term insurance, compulsory insurance, professional indemnity insurance, claims arising from the death or incapacity of the policyholder through injury, sickness or infirmity, and building guarantee insurance. FSCS's examples include third-party motor, employers' liability, whole of life and term life cover, critical illness, insured personal pensions, annuities and income protection.
• 90% for all other general insurance claims. FSCS's examples are motor first party, pet, travel, home, dental, health, warranty, public liability and property.

FSCS may instead arrange for a new insurer to take over the policy, or repay 90% of any unused premium (FSCS: insurance). If an insurance broker or adviser fails, COMP 10.2.3R also pays 100% or 90% of the claim with no upper limit, depending on the type of insurance.

Mortgage advice and home finance

FSCS covers bad mortgage advice or broking, not the loan itself: its leaflet says "we cover the advice, we do not cover the lending or administration costs on the mortgage itself". The limit is £85,000 per person per firm (COMP 10.2.3R, protected home finance mediation). The advice must have been given on or after 31 October 2004 and must relate to a UK property that is your main home, not a buy-to-let or commercial property. Home purchase plans and home reversion plans have been covered since 6 April 2007 (FSCS: mortgages).

What the FSCS does not cover

• Crypto. FSCS says "FSCS cannot protect you if a platform that exchanges or holds them goes out of business" (FSCS: cryptoassets); its leaflet lists cryptoassets as not covered.
• E-money and payment firms. FSCS "can't protect you if an e-money firm or payment services firm fails" (FSCS: can't find your bank?). Authorised e-money and payment institutions must instead safeguard customer money, by keeping it separate or insuring it (FCA: safeguarding).
• Money not held in a UK branch. FSCS "can only protect money held by UK branches of authorised banks and building societies", and tells savers to check with a firm, before opening an account, where it will hold the deposit and what protection is available.
• Other exclusions in the FSCS leaflet: peer-to-peer lending, money on pre-paid credit cards, Christmas and other savings clubs, "boiler room" scams sold by unauthorised firms, losses purely from investment performance, and some electronic payment services and currency bureaux.
• NS&I is a different case. NS&I says "We offer 100% security on all deposits as we are backed by HM Treasury" (NS&I: about us), so savings and Premium Bonds there are not capped at the FSCS limit.

How to check your money is protected

1. Search the firm on the FCA Financial Services Register. It shows whether the firm is authorised, its firm reference number (FRN) and the other names it trades under, which is how you spot brands sharing a licence.
2. For savings, use the FSCS bank and savings protection checker. Enter each provider and balance and it flags shared banking licences and any unprotected amount. FSCS says that if you cannot find your provider in it, FSCS might not protect your money.
3. For investments and pensions, FSCS suggests asking the firm to confirm that the activity it carries out for you is regulated and FSCS protected.
4. Watch for clones. FSCS warns that scammers can use a real firm's name and the FSCS logo, so check the FCA's warnings before you pay anything.

For how much cash to keep instantly accessible and where to hold it, see the emergency fund guide.