# FSCS deposit protection: how the £85,000 limit really works > Banking & current accounts · Last updated 4 July 2026 Canonical HTML: https://moneyguide.org.uk/banking/fscs-deposit-protection/ Markdown mirror: https://moneyguide.org.uk/banking/fscs-deposit-protection.md ## Quick answer The Financial Services Compensation Scheme protects up to £85,000 per person, per authorised bank or building society, if your provider fails. The Financial Services Compensation Scheme protects up to £85,000 per person, per authorised bank or building society, if your provider fails. The trap is that several familiar brands often share one banking licence — so the limit covers the group, not each brand. ## Key facts - Protection limit: £85,000 per person, per authorised banking institution (FCA/PRA authorisation). - Joint accounts: each account holder gets their own £85,000 — so £170,000 in total. - Many high-street brands share a single licence (e.g. HSBC and First Direct, Lloyds and Halifax and Bank of Scotland) — the £85,000 covers all of them combined. - Temporary high balances up to £1m are protected for six months after a qualifying life event (e.g. house sale, redundancy payout, inheritance). - Use the FCA register and FSCS protection checker before spreading large sums across multiple brands. ## What FSCS actually covers FSCS protects cash deposits — current accounts, savings accounts and cash ISAs — held with UK-authorised banks, building societies and credit unions. If the provider goes bust, you can claim back up to £85,000 per person per institution, normally within seven working days for most claims. Protection is automatic. You do not need to register, and the scheme is free. It is funded by a levy on regulated firms. Investments, pensions and insurance have separate FSCS rules and limits, not covered here. ## How banking groups share a licence The £85,000 limit applies per FCA/PRA authorisation, not per brand. Many groups operate several customer-facing brands under one licence — meaning if you spread £85,000 across each brand in the same group, you only have £85,000 of total protection, not several lots of it. Examples of shared licences include HSBC UK (HSBC, First Direct, M&S Bank), Lloyds Banking Group (Lloyds, Halifax, Bank of Scotland on one licence; BM Savings separate), and Bank of Ireland (Bank of Ireland UK, Post Office Money savings). You can check whether two providers share a licence using the FSCS protection checker on the FSCS website. ## The temporary high balance rule If you receive a large one-off payment — sale of a main home, redundancy lump sum, inheritance, divorce settlement, insurance payout, personal injury compensation — FSCS protects up to £1,000,000 on top of the £85,000 for six months from the date the money is credited. After six months the cover drops back to the standard £85,000, so if you are sitting on a much larger balance, you will normally want to spread it across multiple banking groups before the window ends. ## Frequently asked questions ### Are my National Savings & Investments products FSCS-protected? No — and they don't need to be. NS&I is backed by HM Treasury, so 100% of your money is protected by the UK Government regardless of amount. ### What about EU or offshore banks? Only UK-authorised institutions are covered by FSCS. EU banks have their own national schemes (typically €100,000), and offshore deposits in places like Jersey or the Isle of Man have separate, usually lower, schemes. ### Is my money safe with app-based banks like Monzo, Starling or Chase? Yes, assuming they hold UK banking authorisation. Monzo, Starling and Chase UK are all UK-authorised banks with full £85,000 FSCS cover. Some app providers (e.g. Revolut UK) operate on a different basis — always check FSCS status before depositing large sums. ### Does opening accounts at Halifax and Lloyds give me £170,000 of cover? Usually no. Halifax and Lloyds often share one banking licence, so combined balances count as one £85,000 pot. Split money across genuinely separate banking groups — not just separate brands — if you need more protection. ## Primary source https://www.fscs.org.uk/what-we-cover/banks-building-societies/ ## Related - [How FSCS licence grouping works](https://moneyguide.org.uk/answers/how-does-fscs-banking-licence-grouping-work/) - [Banking & current accounts](https://moneyguide.org.uk/banking/) - [Savings & ISAs](https://moneyguide.org.uk/savings/) --- Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.