Savings 5 min read • February 2026

What is the FSCS and how does it protect your savings?

If you have money in a UK bank or building society, it's probably protected by the Financial Services Compensation Scheme (FSCS). But most people don't fully understand how this protection works — and that can lead to nasty surprises if a bank fails.

The basics: £120,000 per person, per institution

The FSCS protects up to £120,000 per person, per authorised institution. If you have a joint account, you're each covered for £120,000 — so a joint account has effective protection of £240,000.

This limit was raised from £85,000 to £120,000 in December 2025, reflecting inflation and strengthening consumer protection.

💡 Key point

The limit is per authorised institution, not per brand. Many banks operate multiple brands under a single banking licence — meaning your money across those brands is only protected once.

Watch out for shared banking licences

This is where it gets tricky. Some banking groups operate several brands under a single licence. For example:

Lloyds Banking Group: Lloyds, Halifax, Bank of Scotland, Scottish Widows
NatWest Group: NatWest, RBS, Ulster Bank
HSBC Group: HSBC, First Direct, M&S Bank

If you have £70,000 in Lloyds and £70,000 in Halifax, you have £140,000 with one authorised institution — only £120,000 is protected.

How to check your protection

The FSCS maintains a full list of protected firms and their authorisation status. You can search for any provider at fscs.org.uk.

When checking, look for the firm reference number — if two brands share the same FRN, they share the same protection limit.

What about temporary high balances?

If you've recently received a large sum — like a house sale, inheritance, or redundancy payment — you may qualify for temporary high balance protection. This extends cover to £1.4 million for up to six months.

Qualifying events include: property sale proceeds, inheritance, divorce/separation settlements, redundancy, and personal injury compensation.

Practical steps if you have more than £120,000

If your savings exceed the protection limit, consider:

Spread your money across multiple authorised institutions (not just brands)
Use NS&I — 100% government backed with no upper limit
Consider fixed-term accounts at different providers

🔧 Try our Savings Finder

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