FSCS Deposit Protection

(The weekly series - Pocket Money - where I explain financial basics in fewer than 200 words. Feel free to make suggestions!)

The Financial Services Compensation Scheme deposit protection means that your money deposited in a bank, building society or credit union is safe if they go bust. This is money saved in a current or savings account.

The limit is, as of December 2025, up to £120,000 per person, per institution. There are times when a higher limit of £1.4million per person, per institution applies (like right after selling a house or receiving a legacy from a will). 

If you have more than £120,000 held in one firm you should think about transferring some to another firm to ensure full coverage. Be aware that some firms are subsidiaries of others, and so you may want to check if you’re fully covered. 

Investments are also covered, but to a lower level, and under separate rules - this applies for example, if you were given bad advice, not just if your investments don’t do well (as good returns are not guaranteed in investments). 

The scheme is paid for via levies from the firms themselves, the amount they pay depends on the value of protected deposits that they hold. 

Love Eleanor. xxx