FSCS savings protection: how much of your money is protected?
The UK deposit protection limit changed in December 2025. The headline number is now £120,000, but the most important detail is that protection is normally per eligible person, per authorised firm — not per brand name.
From 1 December 2025, eligible deposits with UK-authorised banks, building societies and credit unions are generally protected by the FSCS up to £120,000 per eligible person, per authorised firm. Some brands share a banking licence, so balances under different names can count toward the same limit.
The standard deposit limit is £120,000
The Financial Services Compensation Scheme raised its deposit protection limit from £85,000 to £120,000 on 1 December 2025. If an eligible UK-authorised bank, building society or credit union fails and cannot return customer deposits, FSCS can compensate eligible customers up to that limit. The protection applies to qualifying deposits such as money in current and savings accounts, not to every financial product a company may sell.
For most households the system is automatic rather than an insurance policy you buy. The critical job for the saver is to know which authorised firm actually holds the money. A familiar app or brand can be operated under another bank’s licence, and several brands can sit under one authorisation.
Why banking licences matter more than brand names
FSCS protection is normally calculated per eligible person, per authorised firm. If two brands share the same banking licence, your balances across those brands are combined for the limit. Splitting £180,000 between two logos does not create £240,000 of protection if both deposits legally sit with the same authorised bank. Conversely, genuinely separate authorised institutions can provide separate limits.
Before moving a large balance, use the FSCS bank and savings protection checker or the Financial Services Register rather than relying on branding. The legal entity named in the account documents is more important than the colour of the debit card or the name on the app.
Joint accounts and temporary high balances
For a qualifying joint account, protection is generally applied to each eligible account holder’s share, so two eligible people can have a higher combined protected amount than one person at the same authorised firm. The exact treatment can depend on ownership, so large balances deserve a proper check rather than a rule-of-thumb calculation.
FSCS also provides temporary high balance protection of up to £1.4 million for qualifying major life events, such as certain proceeds from selling a main home or receiving an inheritance. The enhanced protection is time-limited — generally up to six months — and eligibility depends on the circumstances. That makes it useful for transitional money, not a permanent substitute for spreading long-term deposits.
What FSCS protection does not mean
Deposit protection does not guarantee an interest rate, prevent fraud or cover every fintech balance. Electronic money institutions use safeguarding arrangements rather than standard FSCS deposit protection for e-money. If an app is not a bank, read how customer money is held and which legal entity provides the account before assuming the £120,000 limit applies.
Protection also should not replace basic cash management. If you keep more than the standard limit in cash for a long period, consider whether multiple separately authorised institutions are appropriate for your needs. Keep a simple record of which brands share licences so that a future merger or account move does not accidentally concentrate more money than you intended.
How to apply the £120,000 limit when you have several accounts or brands
FSCS protection is measured by authorised firm, not simply by the logo on the app or branch. That distinction matters when two banking brands operate under the same banking licence. If you hold large balances, use the FSCS protection checker and the bank’s deposit information sheet to confirm which legal entity accepts the deposit. Splitting money between two brands does not create two separate £120,000 limits when both balances sit with the same authorised firm.
Joint accounts also change the calculation because eligible protection is generally assessed per person. A jointly held balance can therefore have more protection than a sole account, subject to eligibility and the authorised firm relationship. Temporary high balances can receive additional protection in certain circumstances—for example following some property, inheritance or life-event proceeds—but the rules, evidence and time limits matter. Do not assume every unusually large balance qualifies automatically.
Protection is only one part of choosing where to save. Interest rate, withdrawal restrictions, tax treatment and service quality still matter. But if your cash position approaches the protection ceiling, licence structure deserves the same attention as the advertised rate. A small improvement in interest may not justify concentrating an amount of cash that you intended to keep fully within statutory protection.
Sources and verification
Isabelle Reed — Personal Finance Writer
For savers, the jump to £120,000 is good news, but I think the licence question is more important than the headline number. People naturally think in brands: they see two different names and assume two separate pots of protection. FSCS protection follows the authorised firm. If you hold a large emergency fund, house deposit or sale proceeds, spend five minutes checking the legal structure before you move the money. I would also keep temporary high balance protection in perspective. It can give valuable breathing room after a qualifying life event, but it is time-limited and has conditions; it is not a permanent £1.4 million allowance. Another distinction worth making is between banks and e-money providers. A slick app can look bank-like while customer funds are protected through safeguarding rather than FSCS deposit compensation. None of this means smaller providers are inherently unsafe. It simply means the protection mechanism matters. My practical rule is to know the authorised firm, know your total exposure to that firm, and re-check whenever you open a new account or move a large balance. For savers with ordinary balances, the FSCS limit may never affect a day-to-day decision. For someone selling a home, receiving an inheritance or holding substantial cash, it becomes a planning issue. I would map balances by authorised firm before chasing rates and keep evidence for any temporary-high-balance claim. Brand recognition is not a substitute for checking the licence.
MyBankAnswers uses official provider and UK regulatory sources wherever practical. Information is general and does not constitute financial advice.