Amounts of compensation: deposits
Customer deposits held by banks, building societies and credit unions (including in Northern Ireland) in UK establishments that are authorised by the PRA are protected by the FSCS up to £85,000. This includes, for example, eligible deposits in current accounts, savings accounts, cash ISAs (held with a deposit taker) or savings bonds.
The deposit protection limit applies to the total eligible deposits of each person, per PRA-authorised firm. So for deposits in a joint account, this means that each account holder is protected up to the deposit protection limit, ie the total protection adds up to two times £85,000.
A PRA-authorised firm may own several banking and building society brands. This means that anyone who has deposits in more than one account under a single brand, or multiple accounts under different brands owned by a single firm, is only protected up to a total of £85,000 across all these accounts.
There will be temporary deposit protection for up to 6 months above the £85,000 limit for certain types of deposits classified as temporary high balances, such as the proceeds from private property sales. Protection will be up to £1million in most cases.
People with eligible deposits that add up to more than the deposit protection limit may wish to take steps to keep their deposits fully protected (eg by splitting their deposits across different PRA-authorised firms).
In March 2023, we amended the rules in the Depositor Protection Part of the PRA rulebook to clarify the protection available to eligible customers of e-money institutions (EMI), authorised payment institutions or small payment institutions (together PI), and credit unions (in respect of e-money), if a credit institution holding such firms’ safeguarded funds were to fail. In the event of such a failure, each end customer would be considered against the eligibility requirements and eligible customers would be separately protected up to the £85,000 limit.