How FSCS Protection Works: Is Your Money Safe in a UK Bank?
What Is the FSCS?
The Financial Services Compensation Scheme (FSCS) is the UK's statutory safety net for customers of authorised financial firms. If a bank, building society, or credit union holding your money fails, the FSCS pays out automatically — up to defined limits — without you needing legal action.
The £85,000 Limit
FSCS protects up to £85,000 per person per authorised institution. For joint accounts, each holder is protected separately — giving £170,000 total. The limit applies per banking licence, not per brand: Halifax, Bank of Scotland, and Lloyds share one licence, so £85,000 covers all three combined.
Temporary High Balance Protection
If your account temporarily holds more than £85,000 due to selling a home, receiving an inheritance, or a redundancy payment, you may be protected up to £1 million for six months. Notify your bank to record this.
What FSCS Does Not Cover
- Investment losses (covered separately, up to £85,000 per firm)
- Fraud losses (handled by your bank directly)
- Accounts at unauthorised institutions
How to Check Coverage
Only FCA or PRA authorised firms are FSCS-eligible. Check register.fca.org.uk. Major UK banks, building societies, and licensed neobanks — Monzo, Starling, Chase UK, Revolut — are all covered. Some older e-money providers safeguard funds differently; check their terms carefully.
Payout Speed
FSCS aims to pay within seven days for deposits. You don't need to claim — the FSCS contacts you if your bank fails. Visit fscs.org.uk for more information.
