FSCS deposit protection: how the £120,000 limit works
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Quick answer: FSCS protects eligible deposits up to £120,000 per person, per authorised bank, building society or credit union, from 1 December 2025. A joint account with two eligible holders can have up to £240,000 cover. Brands sharing one banking licence share one limit; separate accounts do not create extra protection.
If a covered bank fails, the Financial Services Compensation Scheme can return your eligible deposits without a fee. The standard limit is £120,000 per person, per authorised firm. Work out the total held under each banking licence, including current accounts, savings and Cash ISAs, before deciding where to keep a large balance.
Before you start: This guide covers cash deposits. Investments, pensions, insurance and APP scam reimbursement have different rules and limits. NS&I products have separate HM Treasury backing.
Content updated: 4 min read
Which accounts count towards the £120,000 limit?
Eligible current accounts, savings accounts and Cash ISAs held with the same authorised bank count together. The wrapper or brand does not give you a separate protection allowance. Check accrued interest too if your balance is close to the limit.
For example, £80,000 in a savings account and £50,000 in a Cash ISA under the same banking licence is £130,000 in total. The ordinary £120,000 limit would leave £10,000 above standard protection, unless qualifying temporary high-balance cover applies.
How much is protected in a joint account?
Each eligible holder has their own £120,000 limit. For two holders with equal shares and no other deposits at that bank, this can protect £240,000 in a joint account. It is not an extra £240,000 on top of their individual allowances.
For example, if your share of joint deposits is £70,000 and you also have £60,000 in a personal account under the same licence, your total is £130,000. Under standard protection, £10,000 of your share would be above the limit.
When does temporary high-balance protection apply?
Certain life events, including selling your main home or receiving an inheritance, can qualify for protection up to £1.4 million for six months. Different conditions apply to different events; personal injury, disability and incapacity claims can qualify for unlimited protection. This is not a general increase for any large savings balance.
Keep evidence showing the source of the money and the date it became legally transferable or first reached your account. Moving it to another account does not restart the six-month period. Some high-balance claims require an application and take longer than ordinary deposit compensation.
Plan where money will sit before temporary protection expires. Read the FSCS temporary high-balance rules to check whether your event and evidence qualify.
What happens if your bank fails?
FSCS normally pays standard eligible deposit compensation automatically within seven working days of a bank, building society or credit union failing. You do not register or pay a claims company to obtain protection.
More complex cases, including temporary high balances, can take longer and may require evidence. Use FSCS directly for instructions and be cautious of anyone demanding an upfront payment to release your compensation.
Common questions
Does the £120,000 limit cover investments or scam losses?
No. This is the deposit limit. Eligible investment claims normally have a separate £85,000 limit per person, per firm, and market losses are not covered. APP scam reimbursement is a different scheme with its own eligibility and limits.
Are app-based banks covered by FSCS?
Eligible deposits with an authorised bank can be protected whether you use an app or a branch. An e-money wallet is different from a bank deposit. Check the exact legal entity and deposit-protection information for your account rather than relying on the app name.
Are NS&I savings covered by FSCS?
NS&I has separate HM Treasury backing rather than the FSCS deposit scheme. Check the protection and product rules directly with NS&I.
Does using a savings marketplace increase my protection?
Protection follows the bank actually holding each eligible deposit. Include money you hold directly with that bank and through any other marketplace when checking the limit; the marketplace login is not a new banking licence.
Why do some websites still quote £85,000?
£85,000 was the standard deposit limit before 1 December 2025. It is now £120,000 for eligible deposits. The £85,000 figure can still be correct for a different protection scheme, such as eligible investment claims.