FSCS Protection UK: What's Actually Covered Up to £85k?
Two of your accounts. Two different brand names. One banking licence. The FSCS rule everyone gets wrong until the morning a bank fails and the other £35k stops existing.
FSCS protection limits by product type
| Product | Limit | Per | Notes |
|---|---|---|---|
| Cash deposits | £85,000 | Person per banking licence | Joint accounts: £170,000 |
| Temporary high balance | £1,000,000 | 6 months | House sale, inheritance, divorce |
| Investment platform | £85,000 | Person per firm | Underlying assets usually safe regardless |
| Pension annuity | 100% (no cap) | Person per provider | Strongest FSCS rule |
| Long-term insurance | 100% (no cap) | Person per policy | Life, income protection |
| General insurance | 90% (no cap) | Per claim | Motor, home, travel |
Source: FSCS.org.uk. Always check the FSCS register for licence sharing between brands.
Key takeaways
FSCS protects up to £85,000 of cash deposits per person, per banking licence - not per account, brand, or product
Several "different" UK banks share licences (HSBC + First Direct, Lloyds + Halifax + Bank of Scotland) - check the FSCS register
Investment platforms have separate £85,000 protection covering custody/admin failures, but underlying assets are usually held in your name and outside the platform anyway
Pensions and life policies have their own FSCS rules with no cap on insurance contracts and 100% protection for pension annuities