FSCS £120,000 Deposit Protection Explained UK

FSCS £120,000 deposit protection explained (UK)

From 1 December 2025, the Financial Services Compensation Scheme can compensate eligible deposits up to £120,000 per eligible person, per authorised firm if a UK-authorised bank, building society or credit union fails. That replaced the previous £85,000 limit that applied through 30 November 2025. The Prudential Regulation Authority confirmed the rise in November 2025. Failures on or after 1 December 2025 use £120,000; earlier failures still use £85,000. Only the deposit and savings limit rose — other FSCS claim types did not automatically move to £120,000.

Covered deposits are eligible money with PRA-authorised UK banks, building societies and credit unions. The Bank of England lists examples such as current accounts, savings accounts, cash ISAs and savings bonds. Look for the FSCS Protected badge and confirm the firm on the FCA Financial Services Register. Sole traders usually get one £120,000 limit across personal and business deposits with the same firm.

The limit is per person per authorised firm — not per brand. If several brands share one banking licence, balances across those brands count toward one £120,000 pot. FSCS and BoE give examples such as HSBC brands including first direct. Use the FSCS bank and savings protection checker and the FCA Register rather than guessing from brand names.

On eligible joint accounts, each holder can be covered up to £120,000, so two holders can mean up to £240,000 on that joint balance with that firm. Solo accounts with the same firm still sit under each person’s single £120,000 limit there.

For certain life events, temporary high balances can be protected up to £1.4 million for up to six months (that ceiling also rose on 1 December 2025). Qualifying events include things like selling a main home or inheritance — check the live FSCS temporary high balances page for the list and evidence rules. Typical standard deposit payouts aim for within seven working days; temporary high balance claims can take longer and need evidence after a firm fails.

Deposit protection does not cover investment market losses. Cryptoassets and many crypto platforms are generally outside this scheme. E-money and some payment-wallet balances may not be FSCS deposit-protected. Investment firm claims often still sit under different limits, commonly framed around £85,000. NS&I is separate and backed by HM Treasury, not FSCS.

To check protection, use the FSCS bank and savings checker, the FCA Register, and official FSCS or BoE explainers — and watch for cloned firms or fake logos. This is general information, not personal advice on where to hold money.

Sprault helps you track accounts, assets and net worth so large cash pots are visible beside the rest of your finances. Sprault provides planning tools and educational information only — not regulated financial advice.