What FSCS protection covers—and what it does not

The Financial Services Compensation Scheme (FSCS) is the UK's official deposit protection scheme. It protects eligible deposits held with banks, building societies, and credit unions that are authorised by the PRA and regulated by the FCA.

If a regulated bank fails and cannot return your money, the FSCS compensates eligible customers up to £120,000 per person, per authorised institution. In most bank failures, eligible depositors are compensated automatically, usually within 7 working days.

FSCS only applies to firms that hold a full UK banking licence. Not all financial apps or money providers qualify, which is why it is important to understand whether your provider is a bank or an e-money institution.

The FSCS protects eligible deposits up to £120,000 per person, per authorised bank. This means each individual has their own separate protection limit at each licensed institution.

For a joint account, each named holder keeps their own £120,000 allowance — but that allowance is shared across everything they hold at that bank, not reserved for the joint account alone. A two-person joint account, with no other savings held at that bank, can therefore be protected up to £240,000 in total between the two holders.

The protection limit applies per authorised banking licence, not per brand. If two banking brands operate under the same licence, your combined deposits across both count toward a single £120,000 per-person limit.

If you hold more than £120,000 with one authorised bank, any amount above the limit may not be protected.

Both digital banks and high street banks that hold a full UK banking licence are covered by FSCS protection.

Fully licensed digital banks include Monzo, Starling Bank, Atom Bank, Zopa Bank, Kroo, and Chase UK. Fully licensed high street banks include Barclays, Lloyds Bank, NatWest, HSBC, Santander, Nationwide, Halifax, and TSB.

However, not all financial providers are banks. Some operate as e-money institutions rather than deposit-taking banks, meaning they are not FSCS protected.

You can compare licensing status, FSCS coverage, savings features, and fees for both bank types in our digital banks guide and high street banks guide.

If a UK bank with FSCS protection collapses, the Financial Services Compensation Scheme automatically steps in to protect eligible deposits up to £120,000 per person, per authorised bank.

Straightforward claims are usually paid out within 7 working days and the process is automatic. More complex cases — including Temporary High Balance claims — can take longer, and FSCS may contact you directly if it needs more information.

If you hold more than the protection limit at that institution, any amount above £120,000 may be at risk.

Below is a summary of FSCS coverage for major UK digital and high street banks.

For a full breakdown of licensing status, savings features, fees, and protection levels, see our bank comparison guides, or jump straight to the table below.

Always double-check with the provider and the FCA register before depositing large sums.