How FSCS protection works, and what changed at £120,000
The FSCS protects eligible savings up to £120,000 per person, per bank. Here's what's covered, how banking licences affect it, and what happened in December 2025.
Oli Butcher, CEO, Riff
Published 18 October 2026 · Last reviewed 18 October 2026 · 2 min read
Short answer
The Financial Services Compensation Scheme protects eligible savings up to £120,000 per person, per authorised bank. The limit rose from £85,000 on 1 December 2025. If your bank fails, the FSCS pays you back up to that amount.
What is the FSCS?
The FSCS is the UK’s compensation scheme for customers of authorised financial firms. For savings, it covers banks, building societies and credit unions authorised in the UK. You don’t apply for it or pay for it. The firms it covers fund it.
How much is protected?
Up to £120,000 of eligible deposits, per eligible person, per authorised firm. That covers current accounts, savings accounts and Cash ISAs held with that firm.
The limit was £85,000 until 1 December 2025. If you set up your savings before then, it’s worth checking whether you have room to hold more with one bank, or whether you split money unnecessarily.
Why does the banking licence matter?
The limit applies per authorised firm, not per brand. Some banks run several brands under one banking licence. If you hold savings with two of those brands, they count as one bank, and the £120,000 limit covers both together.
It’s the most common mistake people make with FSCS protection. You can check which brands share a licence on the FSCS website or the Financial Services Register.
What about joint accounts and large one-off sums?
- Joint accounts: each account holder gets their own £120,000 limit, so a joint account in two names can be protected up to £240,000, as long as neither holder has other savings with that bank.
- Temporary high balances: if you’re holding a large sum for a short time, for example after selling a home or receiving an inheritance, the FSCS can protect up to £1.4 million for up to six months.
What happens if my bank fails?
The FSCS aims to pay eligible savers back within seven days of a bank failing. You don’t need to make a claim for most savings accounts.
How do I keep more of my savings protected?
- Add up what you hold with each banking licence, not each brand.
- Spread savings above £120,000 across different authorised banks if you want all of it protected.
- Check a bank is covered before you open an account. Look for the FSCS logo, or search the Financial Services Register.
Sources
This guide is general information, not financial advice. Rates and rules change, so check the latest position before you act.