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Is your money safe? What the FSCS actually covers

The FSCS protects money at different levels depending on what it is sitting in. Life cover is covered better than cash, which catches people out.

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The short answer

The FSCS protects deposits up to £120,000 per person per banking group, investments up to £85,000 per person per firm, and long-term insurance such as life cover at 100% with no cap. A temporary high balance from a house sale or inheritance is protected to £1.4 million for six months.

£120,000Deposits, per banking group
£1.4 millionTemporary high balance
£85,000Investments, per firm
100%Long-term insurance, no cap
What is on this page
  1. The limits, by product
  2. Banking groups, not brands
  3. Temporary high balances
  4. What is not covered

The limits, by product

What you hold Protected up to Per
Bank, building society or credit union deposits £120,000 Person, per banking group
Temporary high balance, such as a house sale £1.4 million six months from the deposit
Investments where the firm has failed £85,000 Person, per firm
Pensions, depending on how they are held 100% or £85,000 Depends on the structure
Long-term insurance, including life cover 100% of the claim No upper limit
Debt management client money £85,000 Person, per firm

Deposit protection rose to £120,000 on 1 December 2025 for firms failing after 30 November 2025.

The life insurance line is the one people miss. Long-term insurance is protected at 100% with no cap, which is a stronger guarantee than savings get.

Banking groups, not brands

The limit applies per banking group, not per brand. Several familiar names sit under a single authorisation.

Holding money with two brands in the same group gives you one limit between them, not two. The FSCS has a free checker that tells you which licence a brand sits under.

Take two savings brands that look separate but share one banking licence. Someone holding £95,000 with each has £190,000 with one firm, and the protection is £120,000, not £240,000.

Temporary high balances

If a large sum lands for a specific life event, the protection rises to £1.4 million for six months from the date it was deposited.

  • Proceeds from selling your main home
  • An inheritance or a legacy
  • Redundancy pay
  • Insurance or compensation payouts
  • Divorce settlements

It is time limited. If the money is still sitting in one account after six months, the standard limit applies again.

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What is not covered

Unregulated investmentsStorage pods, overseas land, some crypto products. No FSCS cover and usually no Ombudsman route.
Investment lossesThe FSCS covers firm failure and bad advice, not the market falling. Losing money on a suitable investment is not compensatable.
Firms not authorised in the UKIf the firm is not on the FCA Register, there is no protection at all.
Most business accounts above the limitCompanies are generally covered for deposits up to the same limit regardless of size, but most regulated financial firms are not.

Where you stand

Check your position if
  • You hold more than the limit with one banking group
  • A house sale or inheritance has just landed
  • You use two savings brands that may share a licence
  • You hold investments with a single platform
There is no cover at all if
  • The firm is not authorised in the UK
  • The investment is unregulated
  • The loss is only the market falling
  • You sent money to a firm you did not check

Check broadband before you make an offer

Broadband speeds can vary street by street, so check the exact address before you commit. Ofcom's free checker shows which broadband speeds and mobile coverage are available at any UK property.

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We can introduce you to a specialist who can combine your mobile, broadband and utilities into one bill. There's no fee for the introduction.

We don't provide these services ourselves. Switching household bills is not a regulated financial service, so FCA protections and the Financial Ombudsman do not apply. We'll only pass your details to the specialist if you ask us to. See our privacy notice.

Questions people actually ask

How much of my money is protected by the FSCS?
£120,000 per person per banking group for deposits, £85,000 per person per firm for investments, and 100% with no cap for long-term insurance such as life cover.
Is my life insurance protected?
Yes. Long-term insurance is protected at 100% of the claim with no upper limit if the insurer fails. It is one of the strongest protections in the system.
What is a temporary high balance?
A large sum from a specific life event such as a house sale, inheritance or redundancy. It is protected up to £1.4 million for six months from the date it was deposited.
Does the limit apply per account or per bank?
Per person per banking group. Several brands can share one banking licence, so two accounts with the same group share one limit.
Does the FSCS cover investment losses?
No. It covers a firm failing or giving you unsuitable advice. A suitable investment that falls in value is not compensatable.
How do I check broadband speed at a property?
Use Ofcom's free broadband and mobile checker at checker.ofcom.org.uk. Enter the property's postcode and choose the address to see which broadband speeds and mobile coverage are available before you make an offer.

Where to go next

Emergency savingsWhere to hold cash safely.Check an adviserNo authorisation means no cover.Financial advice explainedHow the protections fit together.Spotting scamsWhere protection does not reach.Build an emergency fundWhere to hold the money it protects.ISAsWrappers and what sits inside them.
Where these figures come from

Figures checked on 1 September 2026 and correct for the 2026/27 tax year. Rates change, so check the source before you act on a number.

Written by Ben Tomlin. Investment and pension advice goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.

Last reviewed September 2026.

Holding more than the limit in one place?

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This goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.

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