How your savings are protected

If a UK bank or building society fails, the Financial Services Compensation Scheme (FSCS) protects your deposits up to £120,000 per person, per authorised firm. It's automatic, it's free, and you don't have to claim in advance — it's simply the backstop behind your savings.

The catch: it's per licence, not per brand

The limit applies per authorised FIRM (one banking licence), and several familiar brands can share one licence. For example, Halifax, Bank of Scotland, Birmingham Midshires and Intelligent Finance all sit under one licence — so £120,000 at Halifax and £120,000 at Bank of Scotland would count as one pot with only £120,000 of cover, not two. If you hold large balances, it's worth knowing which of your banks share a licence.

Interest counts too

The limit covers your balance PLUS any interest you've earned. So if you're near £120,000 at one firm, remember the interest builds on top and can quietly nudge you over.

Savings platforms are different

A savings platform or 'cash hub' (like some marketplace apps) doesn't hold your money itself — it places it with partner banks. Your protection depends on which partner bank holds each pot, and that can overlap with money you already hold at that bank directly. The platform's own app shows you the split.

E-money isn't FSCS — it's safeguarded

Some accounts (many money apps, and some newer providers) are 'e-money' rather than banks. Your money there is safeguarded — held separately from the provider's own funds — rather than FSCS-protected. It's a different kind of protection, not automatically a weaker one, but it's worth knowing which type your account is.

NS&I is in a class of its own

NS&I (including Premium Bonds) is backed 100% by HM Treasury — the government itself. There's no FSCS limit to think about, which is why some people use it for balances above the FSCS figure.

Joint accounts

A joint account is covered per holder. So two people sharing a joint account are protected up to twice the limit — £240,000 between them — at that firm.

Temporary high balances

Just sold a house or received a big one-off sum? FSCS can cover a temporary high balance of up to £1,400,000 for up to 6 months, so a short-term spike above the usual limit needn't be a worry.

Deposits vs investments

Cash deposits and investments have SEPARATE limits — don't add them together. Investments (like a Stocks & Shares ISA) are covered up to £85,000 per person, per firm, which is a different limit from the £120,000 for cash. This is general information, not advice — always check the FSCS site and your provider's own details.