Are my savings safe? FSCS protection explained

The FSCS limit rose to £120,000 in December 2025. How it works per banking licence, why NS&I differs, and which apps are not covered

If a bank or building society fails, the Financial Services Compensation Scheme (FSCS) pays you back, up to a limit, usually within a week. The limit rose from £85,000 to £120,000 on 1 December 2025. But the protection has rules that catch people out: it applies per banking licence rather than per brand, and some popular money apps are not covered at all. This guide explains what is and is not protected.

Key facts: £120,000 per person per banking licence since 1 December 2025 (£240,000 for a joint account). Brands sharing one licence share one limit. NS&I is backed 100% by the Treasury with no limit. E-money apps are not FSCS protected. A higher temporary limit covers large balances for up to six months after events such as a house sale.

The basic rule

The FSCS protects deposits in UK-authorised banks, building societies and credit unions. If the firm fails, you get back up to £120,000 per person, per authorised firm. Joint accounts get £120,000 per holder, so £240,000 in total.

The limit is per person, per licence, across all accounts. Current account, savings account and cash ISA at the same bank are added together against one limit.

Shared licences

This is the rule most people miss. Some banking groups run several brands under a single banking licence, and the £120,000 limit applies to the licence, not the brand. Examples:

Halifax and Bank of Scotland share one licence. Lloyds Bank has a separate one.
First Direct is part of HSBC UK and shares its licence.
Several building societies and banks run savings brands under their main licence.

If you hold £100,000 with each of two brands that share a licence, only £120,000 of your £200,000 is protected. Ask the provider which licence it operates under, or check the Financial Services Register at fca.org.uk. The FSCS also has a checker on its website.

NS&I

National Savings and Investments is not a bank. It is backed by HM Treasury, so 100% of your money is protected with no limit. This is why Premium Bonds and other NS&I products are the usual home for large sums that would otherwise be spread across several banks.

What is not covered

E-money accounts. Many app-based providers hold your money under e-money rules, not as a bank deposit. They must "safeguard" your money in a separate account, but if the firm fails you are an unsecured creditor and may wait a long time or get back less. Look for the words "e-money" in the terms. If it is not a bank, FSCS does not apply.
Investments. Money in a stocks and shares ISA is covered by a different FSCS limit if the platform fails, but not if the investments fall in value.
Crypto. No protection.
Money in transit. A payment that has left your account but not arrived is not a deposit at either end.
Overseas banks operating in the UK under their home country's scheme. Check which scheme applies before depositing.

Temporary high balances

If you have a large sum for a short period, such as house sale proceeds, an inheritance, a redundancy payment or an insurance payout, the FSCS protects up to £1.4 million (raised from £1 million on 1 December 2025) for six months from the date the money arrives. Check the current figure on the FSCS website. You may need to show evidence of where the money came from when you claim.

Spreading your money

If you hold more than £120,000 in cash:

List every bank and building society you use and identify the licence each sits under.
Keep balances under £120,000 per licence, allowing for interest that will be added.
Use NS&I for any amount you want protected without a limit.
For joint accounts, the £240,000 combined limit applies.
Reset the check whenever you receive a large sum or a bank you use is taken over.

How a claim works

You do not need to apply. If a bank fails, the FSCS identifies eligible depositors from the bank's records and pays most within seven days, usually to a nominated account. Larger or complex cases can take longer. Keep your contact details up to date with each provider so payment is not delayed.

Watch out for

Savings platforms that hold your money across several partner banks. Your money is protected at each partner bank's licence, but check that a partner is not one you already bank with.
Apps that describe money as "held with" a bank. Read the terms to see whether you are the bank's customer or the app's.
Building society mergers and bank takeovers. Two licences can become one.