Deposit Limits

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Deposits made by private individuals and small businesses to any authorised firms are protected by the FSCS. These can be referred to as "retail deposits". Slightly different limits and rules apply if you have a claim against a deposit firm that was declared in default before the FSCS became operational (1 December 2001). Please contact us for more details.

From 31 December 2010, the deposit compensation limit is £85,000*.

Depositors may still receive a share of their savings above this limit following any distribution of assets as part of the insolvency process for a failed bank. This would be a matter for the insolvency practitioner to determine and any recovery would, by necessity, vary according to the circumstances of the specific failure. The FSCS will make the majority of compensation payments in sterling.

If you think that you have a claim but have not heard from us, or if you are worried about what is happening with your claim, please contact us.


More about Credit Union Compensation Limits

The maximum level of compensation for credit union claims is £85,000* per person per firm (for claims against firms declared in default from 31 December 2010).


*From 1 January 2016 deposit limit for bank accounts will be £75,000, and £150,000 for joint accounts. The £75,000 figure is the sterling equivalent of €100,000 as required by the recast Deposit Guarantee Schemes Directive.

For claims against firms declared in default between 30 June 2009 to 30 December 2010, the deposit compensation limit is the higher of £50,000 or €50,000. In the event of default, the Euro amount will be calculated by reference to the currency exchange rate on the day of default.

For claims against firms declared in default between 7 October 2008 and 29 June 2009, the maximum level of compensation is £50,000 (100% of the first £50,000).

For claims against firms declared in default between 1 October 2007 and 6 October 2008, the maximum level of compensation is £35,000 (100% of the first £35,000).

For claims against firms declared in default before 1 October 2007, the maximum level of compensation is £31,700 (100% of the first £2,000 and 90% of the next £33,000).

Temporary High Balances

From 3 July 2015, the Financial Services Compensation Scheme (FSCS) provides a £1 million protection limit for temporary high balances held with your bank, building society or credit union if it fails.

Temporary high balances are the result of specified  major life events that lead to a large amount of money being held in a person’s account for up to six months.

A depositor with a temporary high balance may be entitled to receive additional compensation from FSCS of up to £1 million per life event, with unlimited cover for personal injury claims.

Proceeds resulting from the following life events are categorised as temporary high balances:

Sums paid to the depositor in respect of:

  • Real estate transactions (property purchase, sale proceeds, equity release)
  • Benefits payable under an insurance policy
  • Personal injury compensation (unlimited amount)
  • Disability or incapacity (state benefits)
  • Claim for compensation for wrongful conviction
  • Claim for compensation for unfair dismissal
  • Redundancy (voluntary or compulsory)
  • Marriage or civil partnership
  • Divorce or dissolution of their civil partnership
  • Benefits payable on retirement
  • Benefits payable on death
  • A claim for compensation in respect of a person’s death
  • Inheritance 
  • Proceeds of a deceased’s estate held by their Personal Representative

 

Cover for temporary high balances is only available to individuals and not to companies. 

The usual FSCS limit of £85,000* still applies to all other deposits held with a bank, building society or credit union.

To verify a temporary high balance, FSCS may ask to review evidence such as court documents, legal correspondence or death or marriage certificates. The evidence required will depend on the life event that has resulted in the temporary high balance.

A complete list of the minimum evidence required is available here.

If you think you may be eligible to make a temporary high balance claim please contact us for more information and to request an application form.  

For more information read our Q&As about temporary high balances.


*From 1 January 2016 deposit limit for bank accounts will be £75,000, and £150,000 for joint accounts. The £75,000 figure is the sterling equivalent of €100,000 as required by the recast Deposit Guarantee Schemes Directive.


The FCA

The Financial Conduct Authority website includes a searchable database of all firms authorised and regulated by the FCA and the Prudential Regulation Authority (PRA).

What We Cover

Here you'll find information about what we cover, our compensation limits, and get answers to some of the most frequently asked questions.

The FOS

The Financial Ombudsman Service is the official independent expert in settling complaints between consumers and financial businesses

Jargon Buster

  • Credit union

    a financial co-operative which is owned and controlled by its members.
  • Deposits

    money placed in a bank or similar institution to earn interest or for safe-keeping.
  • Eligible

    qualifying for compensation under Scheme rules.
  • In default

    A firm unable, or likely to be unable to pay claims against it. This will generally be because it has stopped trading and has insufficient assets to meet claims, or is in insolvency.
  • Insolvency

    having insufficient assets to meet due debts or liabilities.