Glossary · UK
What is FSCS Deposit Protection?
The Financial Services Compensation Scheme protection covering up to GBP 85,000 per person per authorised institution if a UK bank, building society or credit union fails.
Full Definition
The Financial Services Compensation Scheme (FSCS) is the UK deposit protection scheme, backed by statute (Financial Services and Markets Act 2000). It protects eligible deposits at UK-authorised banks, building societies and credit unions if the institution fails. The protection limit is GBP 85,000 per person per authorised institution (GBP 170,000 for joint accounts). Critically, the limit applies per institution, not per account -- so having GBP 100,000 in two current accounts at the same bank gives only GBP 85,000 protection. Temporary high balances (e.g. from property sales, redundancy payments, personal injury awards) receive up to GBP 1 million protection for 6 months after receipt. FSCS does not cover investments (these have a GBP 85,000 investment protection limit), pensions, insurance policies or foreign currency accounts at UK branches of non-UK banks. If your bank is a trading name of another bank (e.g. Halifax and Bank of Scotland are both part of Lloyds Banking Group), deposits across all brands share the GBP 85,000 limit. FSCS compensation is typically paid within 7 business days of a bank failure. To maximise protection, spread deposits above GBP 85,000 across multiple banking groups.