FSCS Protection Explained — Is Your Money Safe?

The FSCS is your safety net if a UK financial firm fails. Here’s what you need to know about protection limits.

What Is the FSCS?

Feature	Details
Stands for	Financial Services Compensation Scheme
What it does	Pays compensation if authorised firms fail
Who funds it	UK financial services industry
Cost to you	Free
Protected products	Deposits, investments, insurance, pensions

Protection Limits

Current Limits (2025/26)

Product Type	Limit Per Person, Per Firm
Deposits (savings)	£85,000
Investments	£85,000
Insurance	90% of claim, no upper limit
Pensions (SIPPs, personal)	£85,000
Mortgage advice	£85,000
Home finance mediation	£85,000

Joint Accounts

Holding	Protection
Joint savings account	£170,000 (£85,000 each)
Joint investment	£170,000
Must be true joint ownership	Not just authorised access

Temporary High Balance Protection

Situation	Protection
Amount	Up to £1 million
Duration	6 months
Qualifying events	House sale, inheritance, redundancy, divorce
What to do	Inform bank of qualifying event

Bank Deposit Protection

What’s Covered

Covered	Not Covered
Current accounts	Premium Bonds (NS&I backed separately)
Savings accounts	Investments held by bank
Cash ISAs	Bank shares you own
Foreign currency deposits	Credit union (different scheme)

Banking Group Limits

Important: Banks sharing a licence share the £85,000 limit:

Banking Group	Brands (Share £85,000)
Lloyds Banking Group	Lloyds, Halifax, Bank of Scotland, Scottish Widows Bank
NatWest Group	NatWest, Royal Bank of Scotland, Ulster Bank NI
HSBC	HSBC, First Direct, M&S Bank
Santander UK	Santander, Cahoot
Barclays	Barclays only

Spreading Your Savings

If You Have	Strategy
Under £85,000	Any FSCS-protected bank
£85,000-£170,000	Two different banking groups
Over £170,000	Multiple banking groups
Joint account	Up to £170,000 in one place

Example: Safe Distribution

Bank	Savings	Protected
Barclays	£85,000	✅ £85,000
Nationwide	£85,000	✅ £85,000
Atom Bank	£50,000	✅ £50,000
Total	£220,000	£220,000

Investment Protection

What £85,000 Covers

Covered	Not Covered
Firm fails/fraud	Normal investment losses
Bad advice	Poor performance
Firm can’t return assets	Market crashes
Administration issues	Your own decisions

Types of Investment Firms

Firm Type	Protection
Stockbroker	£85,000
Investment platform	£85,000
Financial adviser	£85,000
Fund manager	Depends on structure

Investment Platform Safety

Feature	How It Works
Nominee accounts	Investments held separately
Ringfenced assets	Not part of company assets
If platform fails	Assets returned to you
FSCS	Covers shortfall or fraud

Insurance Protection

What’s Covered

Insurance Type	Compensation
Compulsory insurance (motor third party)	100% of claim
Other insurance	90% of claim
Long-term insurance (life)	100% of claim
No upper limit	Full claim paid

When Insurance Protection Applies

Situation	FSCS Applies
Insurer goes bust	Yes
Insurer can’t pay claims	Yes
Claim dispute with solvent insurer	No — FOS instead
Insurer abroad	Depends on regulation

Pension Protection

FSCS Protection for Pensions

Pension Type	Protection
SIPP	£85,000 (if provider fails)
Personal pension	£85,000 (if provider fails)
Workplace pension	Usually FCA regulated, protected

Pension Protection Fund (PPF)

Different Scheme	What It Covers
PPF (not FSCS)	Defined benefit workplace pensions
Covers	Employer insolvency
Compensation	100% if retired, ~90% if not

How to Check an Institution Is Protected

FCA Register

Step	Action
Go to	register.fca.org.uk
Search	For the firm’s name
Check	“Authorised” status
Confirm	“PRA authorised” for deposits

What to Look For

Status	Meaning
Authorised	Can offer regulated products
Deposit taker	Bank/building society protection
Investment firm	Investment protection
EEA authorised	Different protection (not FSCS)

How FSCS Claims Work

For Deposits

Stage	Timeline
Bank fails	FSCS notified
Assessment	Immediate
Compensation	Within 7 days (target)
Your action	Usually none — automatic

For Investments/Advice

Stage	Process
Firm fails	Contact FSCS
Submit claim	With evidence
Assessment	FSCS reviews
Compensation	If claim valid

How to Claim

Step	Action
1	Check FSCS website for failed firm
2	Complete claim form
3	Provide evidence
4	FSCS assesses
5	Payment made

Contact FSCS

Method	Details
Website	fscs.org.uk
Phone	0800 678 1100
Post	FSCS, PO Box 300, Mitcheldean, GL17 1DY

What’s NOT Protected

Exclusions

Not Protected	Why
Investment losses (market)	Normal risk
Premium Bonds	Government guaranteed separately
Credit unions (under £1million)	Separate scheme (but similar)
Overseas firms	No UK regulation
Crypto assets	Unregulated
Peer-to-peer lending	Not covered

Foreign Banks in UK

Bank Type	Protection
UK branch of foreign bank	May have different protection
EEA passported	Home country scheme
UK subsidiary of foreign bank	Usually FSCS protected
Check carefully	Each case differs

Maximising Your Protection

Checklist

Action	Why
Check FCA register	Confirm protection
Know banking groups	Brands share limits
Spread large savings	Multiple groups
Record accounts	Know where money is
Check annually	Ownership can change

For Couples

Strategy	Protection
Joint account	£170,000 together
Separate accounts at same bank	£85,000 + £85,000 = £170,000
Accounts at different banking groups	Multiply protection

Summary

Product	Limit
Deposits	£85,000 per person, per authorised firm
Investments	£85,000 (for firm failure/fraud)
Insurance	90%+ of claim (no upper limit)
Joint accounts	£170,000 total
Temporary high balance	£1 million for 6 months

Key Action	Do This
Check FCA Register	Confirm protection
Know banking groups	Plan your savings spread
Keep records	Track all accounts
Spread if over £85,000	Different providers