Capital Management

Are My Deposits Really Protected?

By Walid Mograbi · 2026-05-26 · 2 min read

Three quick points to understand the limits of deposit protection before choosing your account.

1) The standard protection limit

For deposits held with a licensed bank or credit union, the standard protection limit is £120,000 per person per licensed entity if the institution fails after 30 November 2025. This limit took effect in practice on 1 December 2025.

2) Temporary high balances are not automatic

A balance of £1.4 million is not an automatic protection level for every large account. It only appears as THB in eligible life-event cases, often such as a home sale or inheritance, and in most cases only for a period of up to six months.

3) Check the institution, not the assumption

The right check starts with the deposit-taking institution itself: is it licensed, or linked to a licensed entity under the same FRN, for deposit protection purposes? If the institution is outside this framework, you cannot assume protection automatically.

4) Quick checklist before you rely on protection

• Confirm the institution: bank or credit union, and whether an FRN is linked to it.
• Confirm the base limit: £120,000 per person per licensed entity.
• Keep in mind the shared limits across names and brands, and the validity period of the licence.
• Do not treat a large balance as fully protected unless it clearly fits the rules.

5) When THB may apply

• An eligible life event has occurred.
• The legal ownership or deposit started first.
• The protection window can last up to six months.
• THB is a specific temporary category, not a general upgrade to every balance.

6) Final verification and warning

Use the official FSCS checker with the institution name or FRN to match the account to the formal FCA details. The numbers and limits can change, so the final status should always be checked through the official tool before you rely on it.