Savings Accounts UK 2026/27 — Easy Access, Notice, Fixed Rate and Premium Bonds GuideFSCS Protection Explained — Is Your Money Safe?
How the Financial Services Compensation Scheme protects your savings, investments, and pensions. Coverage limits, what's protected, and how to claim.
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 |
| 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 |
| 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 |
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