Savings now protected up to £120,000: how FSCS works and why to check a firm with the FCA

If a bank, building society or credit union fails, your money is protected by the government-backed FSCS (Financial Services Compensation Scheme) — free and automatic. And the deposit limit has gone up.

How much is protected

For deposits — up to £120,000 per person, per firm (for firms failing after 30 November 2025; previously £85,000). On a joint account, £120,000 for each holder. If you temporarily hold a large sum (for example after selling a home), a separate protection applies — up to £1.4 million for six months.

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Not just deposits

Other services are covered separately: investments, mortgage advice, bad pension advice and SIPP operator failure, debt management and funeral plans — up to £85,000 per person, per firm. Pension provider failure is covered 100% with no cap. Insurance is 100% for compulsory and long-term cover, and 90% for most other types.

A key detail: the limit is per licence

The limit is per firm (banking licence), not per brand. Several banks sometimes operate under one licence and share a single limit — if you hold large sums, check whether your banks share a licence and, if so, spread the money.

Check the firm with the FCA

Before investing or trusting money to an «adviser», check the firm is on the regulator's register — the FCA (via its ScamSmart / Firm Checker tool). FSCS protection only applies to authorised firms; scammers and unauthorised «brokers» are not covered.