Savings and investment information is for educational purposes only. The value of investments can go down as well as up. Cash savings up to £85,000 per person per institution are protected by the FSCS.
Contents
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 (2026/27)
Deposit protection rose from £85,000 to £120,000 per person on 1 December 2025. Investment and pension protection was not increased and remains at £85,000.
Product Type
Limit Per Person, Per Firm
Deposits (savings, current accounts)
£120,000
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 deposit account
£240,000 (£120,000 each)
Joint investment
£170,000 (£85,000 each)
Must be true joint ownership
Not just authorised access
Temporary High Balance Protection
Situation
Protection
Amount
Up to £1.4 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 £120,000 deposit limit:
Banking Group
Brands (Share £120,000)
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 £120,000
Any FSCS-protected bank
£120,000-£240,000
Two different banking groups
Over £240,000
Multiple banking groups
Joint account
Up to £240,000 in one place
Example: Safe Distribution
Bank
Savings
Protected
Barclays
£120,000
✅ £120,000
Nationwide
£120,000
✅ £120,000
Atom Bank
£50,000
✅ £50,000
Total
£290,000
£290,000
Investment Protection
What £85,000 Covers
Investment protection is a separate FSCS limit from deposit protection and remains £85,000 per person, per firm — it did not rise alongside the deposit limit in December 2025.