What is the FSCS deposit protection limit per bank in the UK?

Full answer

FSCS Deposit Protection Limit in the UK The Financial Services Compensation Scheme (FSCS) protects deposits held with UK-authorised banks, building societies, and credit unions. If your bank fails, the FSCS will pay compensation of up to GBP 85,000 per person per authorised institution. For joint accounts, the limit doubles to GBP 170,000 (GBP 85,000 per account holder), applied to the joint balance. What Counts as One Institution It is important to understand that some banking brands share the same banking licence. For example, Halifax and Bank of Scotland are both part of Lloyds Banking Group and share one FSCS licence. If you hold GBP 85,000 at Halifax and GBP 85,000 at Bank of Scotland, only GBP 85,000 total is protected under that combined licence, not GBP 170,000. Always check the FCA Register to confirm which authorisation a bank operates under. Temporary High Balance Protection The FSCS also provides temporary elevated protection of up to GBP 1,000,000 for certain life-event deposits, such as: - Proceeds from a property sale - Inheritance received - Insurance payouts - Divorce or dissolution of civil partnership settlements - Redundancy payments This higher protection lasts for six months from when the funds are credited to your account, giving you time to deploy or redistribute the money. NS&I Exception National Savings and Investments (NS&I) accounts, including Premium Bonds, are backed directly by HM Treasury and are 100% government-guaranteed with no upper cap. They fall outside the FSCS framework but are considered even safer. How to Maximise Protection To protect savings above GBP 85,000, spread deposits across multiple institutions with separate banking licences. Use the FCA Register to verify licences. Alternatively, consider NS&I for amounts above the FSCS threshold, though NS&I products offer different rates and terms to standard savings accounts.

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