FSCS protection is United Kingdom deposit protection that compensates eligible depositors up to a set limit if an authorised bank, building society, or credit union fails. The limit is 120,000 pounds per eligible depositor, per firm.
General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.
How FSCS protection works
The Financial Services Compensation Scheme, or FSCS, is the United Kingdom's statutory compensation scheme for customers of authorised financial firms. For deposits, it means that if a United Kingdom authorised bank, building society, or credit union fails, eligible depositors are compensated up to a set limit without having to do anything, as the scheme pays out automatically. The deposit limit is 120,000 pounds per eligible depositor, per authorised firm, for firms that fail after 30 November 2025. The scheme also protects certain temporary high balances, such as money from a property sale, up to 1.4 million pounds for six months from when the amount was first deposited, current as of 21 April 2026.
The limit is per firm, not per account
FSCS deposit protection applies per eligible depositor, per authorised firm, rather than per account. Holding several accounts with the same firm does not raise the total protected amount, because the balances are added together and the single limit applies to the combined total. This matters because some banking brands share one banking licence, so money spread across those brands counts as being with one firm for protection. A depositor with more than the limit can spread money across firms that hold separate licences so that more of it falls within protection.
Why it matters to a business
FSCS deposit protection can apply to business deposits as well as to individuals, though eligibility depends on the type of depositor and the rules in force. Small companies are generally eligible, while some larger entities and certain financial firms may not be, so a business cannot assume protection without checking. Because the limit is per firm and some brands share a licence, a business holding large balances should confirm which firm holds its money, whether it is eligible, and how the limit applies. The protection covers United Kingdom authorised deposit takers, and the equivalent in other countries differs, so verify the current position with the provider and the FSCS.
Frequently asked questions
What is FSCS protection?
How much does FSCS protect?
Is the FSCS limit per account or per bank?
Are business deposits covered by FSCS?
Definitions, fees, features, and eligibility change and vary by region. This page was last reviewed on 21 April 2026. Confirm current terms with the provider before applying.