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.