Temporary high balances
A temporary high balance (THB) is money in your account that is much higher than usual because of a major life event, such as selling your home or receiving an inheritance. FSCS may protect these balances up to £1.4 million for six months, if certain requirements are met.
Key facts
Protection limit: £1.4 million
Duration: six months
Starts: when funds become legally yours
Exceptions: unlimited for personal injury.
This page was last reviewed 11 May 2026.
What is a temporary high balance?
A temporary high balance is a higher-than-usual amount of money in your account caused by a qualifying life event.
In most cases:
- FSCS can protect up to £1.4 million for six months
- Protection starts when the money becomes legally yours or is paid into your account
- Some claims (such as personal injury) may have unlimited protection.
FSCS protection for temporary high balances
If your UK-authorised bank, building society or credit union fails and cannot return your money, FSCS can pay compensation. Usually, protection is up to £120,000 per eligible person, per firm. You may be entitled to additional protection if your account has a temporary high balance because of a qualifying life event.
How much protection you can get
- Up to £120,000 per eligible person, per bank, building society or credit union.
- Up to £1.4 million for six months (in most cases)
- Unlimited protection for personal injury, disability or incapacity claims.
Things to know
- You do not need to contact FSCS unless your bank, building society or credit union has failed
- The additional protection is per person, per qualifying life event
- For joint accounts, each person can be protected up to £1.4 million
- Protection starts when the money becomes legally transferable to you or is first credited
- You can move the money and keep protection, but the six-month period does not restart
- Property must relate to your main residence (second homes are not covered)
- FSCS cannot confirm protection until a firm fails and evidence is reviewed.
Qualifying life events
Your balance may qualify as a temporary high balance if it results from one of the following:Property-related
- Sale of your main home
- Property purchase or equity release.
- Inheritance
- Insurance payouts
- Retirement benefits.
- Redundancy
- Divorce or civil partnership dissolution
- Compensation claims (including unfair dismissal or wrongful conviction).
- Personal injury compensation
- Disability or incapacity benefits.
What evidence you may need
FSCS may ask for evidence to support your claim. This will depend on your circumstances but could include:
- Property sale documents
- A will or probate documents
- Court judgements or orders
- Insurance or compensation letters
- Letters from a lawyer, employer or pension provider
- Marriage or death certificates
- HMRC or land registry records.
When FSCS will pay
If your claim is eligible and you provide the required evidence, FSCS aims to pay compensation within three months.Frequently asked questions
What is a temporary high balance?
A temporary high balance is a higher-than-usual balance caused by a qualifying life event such as selling your home or receiving an inheritance.
How much is protected and for how long?
In most cases, FSCS can protect temporary high balances up to £1.4 million for six months.
When does the six-month period start?
It starts when the money becomes legally transferable to you or is first credited to your account.
If I move the money, do I lose protection?
No. You can move the money and keep protection, but the six-month period does not restart.
Are second homes covered?
No. Property transactions must relate to your main residence.
Is there a limit for personal injury claims?
No. Protection is unlimited for personal injury, disability or incapacity claims.
From 1 December 2025, the standard deposit protection limit increased from £85,000 to £120,000. See our Deposit protection limit increase page for more information.