What does the FSCS cover?

FSCS covers deposits (savings accounts, current accounts), investments (if the firm fails), insurance policies, and some mortgage advice. It does not cover investment losses from market movements — only cases where the firm itself fails or provides negligent advice.

Is my money safe if my bank goes bust?

If your bank is UK-authorised and a member of the FSCS, your eligible deposits are protected up to £85,000 per person per banking group. Most claims are paid within 7 working days.

What about savings over £85,000?

Amounts above £85,000 are not protected. If you hold more than this, spread your savings across different banking groups (not just different brands — check which banks share a licence) to maximise FSCS coverage.

Are ISAs covered by FSCS?

Cash ISAs are covered as deposits up to £85,000. Stocks and Shares ISA holdings are covered under the investment protection limit of £85,000 if the platform or provider fails.

How do I make an FSCS claim?

If a firm fails, the FSCS will usually contact you automatically. You can also start a claim at fscs.org.uk. For deposit claims, most are resolved within 7 working days. Investment claims can take longer.

Are cryptocurrency holdings covered?

No. Cryptocurrency is not regulated by the FCA as an investment and is not covered by the FSCS. If a crypto exchange fails, you have no FSCS protection.

FSCS Protection Explained: Is Your Money Safe?

What Is the FSCS?

The Financial Services Compensation Scheme (FSCS) is the UK's statutory deposit insurance and compensation scheme. It protects consumers when FCA-authorised financial services firms fail — essentially acting as a safety net for your money.

The FSCS is funded by levies on the financial services industry, not by taxpayers. It is free to use and you do not need to register or opt in.

What Is Covered?

Deposits — Up to £85,000

Bank accounts, building society accounts, and Cash ISAs are protected up to £85,000 per person per authorised firm. Joint accounts are covered up to £170,000 (£85,000 each).

Important: Some banks share a single banking licence. For example, Halifax and Bank of Scotland are both part of Lloyds Banking Group — your combined holdings across these brands share a single £85,000 limit.

Investments — Up to £85,000

If an FCA-authorised investment firm fails (goes bankrupt, misappropriates funds, or provides negligent advice), you can claim up to £85,000. This covers:

Stocks and Shares ISA platforms
SIPP providers
Unit trusts and OEICs
Investment-linked insurance products

Critical distinction: FSCS covers you if the firm fails, not if your investments lose value. Market losses are not compensated.

Insurance — Unlimited for Compulsory Policies

Compulsory insurance (motor, employer's liability) is covered at 100% with no limit. Non-compulsory insurance (home, travel, pet) is covered at 90% of the claim with no upper limit.

What Is NOT Covered?

Cryptocurrency — Not regulated as a deposit or investment under FCA rules
Investment losses — Market falls and poor performance are your risk to bear
Firms without FCA authorisation — Unregulated firms and offshore companies
Peer-to-peer lending — Most P2P platforms are not covered by FSCS
National Savings & Investments (NS&I) — NS&I is backed directly by HM Treasury (100% guaranteed), so FSCS does not apply

Financial security and regulation concept with shield protecting digital assets — Regulatory oversight and security measures help protect your investments.

How to Check You Are Protected

Visit the FCA Register
Search for your bank, building society, or investment firm
Check they are listed as "Authorised" (not just "Registered")
Confirm the banking group to understand shared licence limits

Temporary High Balances

If you temporarily hold more than £85,000 (e.g., from a house sale, inheritance, or redundancy payment), you may be covered for up to £1 million for six months under the FSCS's temporary high balance provisions. This applies to specific life events and must be claimed within six months.