Deposit protection : I Wish I Knew

The short version

If a UK bank, building society or credit union fails, the Financial Services Compensation Scheme (FSCS) repays your savings for you, up to £120,000 per person at each firm. It is automatic and free to you. It builds on how banks work.

I always thought a bank failing meant everyone with an account there would lose their money.

For most people, no.

The limit is high enough to cover nearly everyone's savings.

What it covers

The FSCS is a UK scheme paid for by the financial industry. If an authorised firm cannot pay its customers, the scheme repays them. You do not need to sign up or pay.

It covers money in current accounts, savings accounts and cash ISAs, at banks, building societies and credit unions. The aim is to pay out quickly, usually within about a week.

£120,000

The limit per person, per firm, for firms that fail from 1 December 2025. Before that it was £85,000, and that still applies to firms that failed earlier. A joint account counts for each holder, so two people are covered up to £240,000.

What counts as one firm

The limit is per authorised firm, not per brand and not per account. A bank may trade under several names but hold one banking licence. Money across all its brands counts together for the limit.

So £100,000 in a current account and £50,000 in a savings account at the same firm is £150,000 in total, and £30,000 of it would be above the limit.

Each separate account has its own £120,000 limit.

The limit is for all your money at one authorised firm, added together. A second account at the same firm does not add more protection.

What is not covered

Investments such as shares and funds are protected differently, up to £85,000 per person per firm, and only if the firm fails and cannot return them. Cryptocurrency is not covered. Losses from a fall in value are never covered.

There is also extra temporary protection for large balances that come from life events, such as a house sale. It lasts up to six months, and the FSCS website lists the cases.

Note: this explains how it works in general. It is not advice for your situation. For a decision about your money, check an official source or ask a qualified professional. Check the FSCS website for the current limit.

Sources: FSCS, current deposit protection limit and investment protection; Bank of England. Figures checked November 2026.

Key takeaways

The FSCS protects UK deposits automatically.
The limit is £120,000 per person, per firm.
A firm may have several brands; one licence counts once.
Joint accounts are protected for each holder.
Falls in value, and crypto, are not covered.

Now you know.

Savings are protected.

Up to £120,000 per firm.

It is automatic.

Deposit protection