FSCS deposit protection: how the £85,000 limit really works
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Quick answer: The Financial Services Compensation Scheme protects up to £85,000 per person per UK-authorised bank or building society if the provider fails — automatically, at no cost to you. Joint accounts get £85,000 each. Several high-street brands share one licence, so spreading cash across brands in the same group does not multiply cover.
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.
Skip this if: Skip this if you only hold NS&I products (those are Treasury-backed, not FSCS) or if you need investment, pension or insurance compensation limits — those are separate FSCS schemes. This page is about cash deposits, not a ranking of banks.
What does FSCS actually cover on cash deposits?
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.
Do two brands in the same group give you two lots of £85,000?
Usually no. The £85,000 limit applies per FCA/PRA authorisation, not per brand. 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.
Check two providers on the FSCS protection checker before you treat them as separate pots. Use the FCA register if the checker is unclear.
| Group (examples) | Customer-facing brands often on one licence | What to do with large cash |
|---|---|---|
| HSBC UK | HSBC, First Direct, M&S Bank | Treat combined balances as one £85,000 pot |
| Lloyds Banking Group | Lloyds, Halifax, Bank of Scotland (BM Savings often separate) | Do not assume Halifax + Lloyds = £170,000 |
| Bank of Ireland UK | Bank of Ireland UK, Post Office Money savings | Check the FSCS checker before splitting a house-sale deposit |
When does the temporary £1m high-balance rule apply?
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, spread it across genuinely separate banking groups before the window ends.
Common 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.