FSCS Protection Explained

What is the FSCS?

The Financial Services Compensation Scheme (FSCS) protects customers when authorised financial firms fail. For deposits with UK banks, building societies and credit unions, eligible accounts are protected up to £85,000 per person, per firm.

If you hold joint accounts, each account holder is usually covered up to the limit separately.

What counts as one firm

Important: the limit applies per banking licence, not per brand. Some banking brands share a licence, so deposits across those brands only get one £85,000 protection pot.

Use the FSCS bank and building society checker before holding large balances with multiple brands that might share the same authorisation.

What is covered

FSCS typically covers current accounts, easy-access savings, fixed-term deposits and cash ISAs held with authorised firms. Protection applies to UK-regulated firms in the event of failure.

• Deposits up to £85,000 per person, per firm
• Joint accounts: £85,000 per account holder in most cases
• Temporary high balances may get extra protection in specific circumstances (e.g. house sale proceeds)

What is not covered

Investments like stocks and shares ISAs, funds and pensions are not deposit protection — they fall under different compensation rules if a provider fails.

Cryptocurrency, e-money without banking licence protection, and scams are generally not covered by FSCS. Always confirm protection before transferring large sums.