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For a bank, building society or credit union failure on or after 1 December 2025, the Financial Services Compensation Scheme (FSCS) can protect eligible deposits up to £120,000 per eligible person, per authorised firm. It is not £120,000 for every account: eligible balances across accounts and brands sharing the same banking licence are combined.
What the £120,000 limit covers
The limit applies to eligible deposits held with a UK-authorised bank, building society or credit union. The relevant unit is the authorised firm—not the account, app or brand name. FSCS changed the limit from £85,000 to £120,000 on 1 December 2025, so the applicable limit depends on the date the firm failed. The previous £85,000 limit applied from 1 January 2017 through 30 November 2025. FSCS explains deposit protection and its limits.
Multiple accounts and linked brands
Add together your eligible deposits in all accounts at the same authorised firm. Opening another savings or current account at that firm does not create another allowance. Different brands may also share one licence: FSCS cites HSBC and first direct as an example. Check the current firm and brand arrangement using the FSCS bank and savings checker and the FCA Financial Services Register.
Joint accounts
Each eligible named holder has an individual limit, and their share of the joint balance counts alongside their other eligible deposits with that firm. If two eligible people hold a joint account and neither has other deposits there, up to £240,000 in that account may be covered: £120,000 for each person. If either holder has other deposits with the firm, those balances count toward that holder’s limit.
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Who owns the money matters
Personal and business accounts
A sole trader’s personal and business deposits are treated as belonging to the same individual, so they share that individual’s limit at the firm. A limited company or limited liability partnership is a separate legal entity and may qualify for its own protection, subject to eligibility. Do not assume that separate account names establish separate protection.
Non-UK residents and money held through platforms
You do not have to live in the UK for eligible deposits to be protected, but the bank or building society must be UK-authorised. If you hold cash through an app, marketplace, cash platform, nominee or client account, the platform’s brand alone does not determine coverage. Eligibility can depend on how the funds are held and whether the underlying beneficial owner can be identified. Check the specific arrangement against FSCS deposit eligibility guidance.
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When a temporary high balance may qualify
Some short-term balances created by specified life events can receive protection above the standard limit. FSCS’s February 2026 leaflet describes protection of up to £1.4 million for up to six months for qualifying temporary high balances. The conditions are specific, and the six-month period is tied to when the money becomes legally yours or is first credited, as applicable under FSCS rules; transferring it does not restart the clock.
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Events and property rules
Examples in the leaflet include money connected with buying or selling a main residence, marriage or civil partnership or its dissolution, redundancy, unfair dismissal, insurance benefits, wrongful conviction, retirement benefits, death benefits, compensation for someone’s death, and an inheritance from a deceased person’s estate. The leaflet’s main-residence rules exclude second homes, holiday homes, buy-to-let property and ordinary savings merely set aside for a property purchase.
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Under the leaflet’s stated conditions, disability or incapacity benefits and personal injury compensation may receive unlimited protection for up to six months. A claim above the standard limit may require written evidence. Because eligibility depends on the event, dates and circumstances, consult the current FSCS temporary high balance guidance for the applicable categories and evidence requirements.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Deposits are not the same as other FSCS-covered products
Current accounts, savings accounts and cash ISAs are examples of deposits covered under the deposit rules. The £120,000 deposit limit is not a single limit for every product FSCS protects. Investments, insurance, pensions and other regulated services have separate coverage rules and limits; use the relevant FSCS coverage information if your money is in one of those products rather than a bank deposit.
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How compensation is paid
When an authorised bank, building society or credit union fails, FSCS says it compensates eligible depositors automatically in ordinary cases and aims to pay most straightforward claims within seven working days. Some cases take longer: FSCS says complex claims, including some temporary high balance claims and cases where the beneficial owner is unclear, may take up to three months. For a qualifying temporary high balance, you may need to contact FSCS and provide evidence. See FSCS’s current bank-failure and compensation guidance.
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Check your protection before you need it
- Identify the legal firm holding the deposit, rather than relying on the app or brand name.
- Check that firm on the FCA Financial Services Register.
- Use the FSCS bank and savings checker to check whether brands share a licence.
- Add your eligible balances across accounts at that firm, including your share of joint deposits.
- If a life event has left you with a high balance, check the temporary high balance categories, qualifying dates, protection period and evidence requirements with FSCS.
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