FSCS protection for bank and building society savings: how the £120,000 limit works
Published · 3 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
The Financial Services Compensation Scheme protects money held in authorised UK banks, building societies and credit unions if one fails. This guide explains the £120,000 limit, joint accounts, shared licences and temporary high balances.
Who this guide is for
This guide is general information for people in the UK who hold money in current accounts, savings accounts, cash ISAs or savings bonds. It does not cover investments, pensions or insurance, which are protected under different FSCS rules, and it is not advice for your own situation.
The figures below apply to firms that fail on or after 1 December 2025 and were checked on the FSCS and Bank of England websites on 7 October 2026. The rules are the same in England, Scotland, Wales and Northern Ireland.
What the scheme does
The Financial Services Compensation Scheme (FSCS) is the UK's protection scheme for customers of authorised financial firms. If a UK bank, building society or credit union is declared unable to pay its customers, the FSCS can pay compensation for eligible deposits, up to a limit.
The Bank of England explains that protected deposit types include current accounts, savings accounts, cash ISAs and savings bonds. The firm itself must be authorised by the Prudential Regulation Authority (PRA). Firms that are not authorised by the PRA are not covered, and neither are non-UK establishments.
The limit
On 1 December 2025 the limit rose from £85,000 to £120,000. It applies per eligible person, per authorised firm. That means it is counted for each person and for each firm, not for each account.
Joint accounts
The FSCS says each holder of a joint account is protected up to £120,000. The Bank of England gives the example that a joint account with two holders can therefore have up to £240,000 of protection in total.
Banks that share a licence
Some banks and building societies are separate brands but share one banking licence. The FSCS treats them as one firm. If you hold accounts with several brands of the same banking group that share a licence, the £120,000 limit applies to the total across all of them, not to each brand.
The FSCS offers a Bank and savings checker on its website, and the Financial Services Register shows whether a firm is authorised. Both can help people see how their accounts are treated.
Temporary high balances
Some life events can briefly push a balance above the limit. The FSCS gives selling a home and receiving an inheritance as examples. For these, protection can reach up to £1.4 million for up to six months from when the money was first deposited. The Bank of England adds that there is no cap for balances linked to personal injury. Claims involving temporary high balances are more complex, and the FSCS says people should contact it for an application form.
What happens if a firm fails
The FSCS says it will pay compensation within seven working days of a bank, building society or credit union failing. The Bank of England notes that complex claims may take longer.
- The limit counts your total across accounts at one authorised firm, including accounts with brands that share its licence.
- The previous £85,000 limit applied to firm failures up to and including 30 November 2025.
- Funds held with firms that are not PRA authorised are not covered by this scheme.
Free help
MoneyHelper, run by the Money and Pensions Service, offers free and impartial guidance on savings. The FSCS can also answer questions about specific accounts.
Check before you act
Limits and rules are reviewed from time to time and can change. It is worth confirming the figures on the official pages linked below before relying on anything in this guide.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
