Increase to UK compensation limit

We have increased the compensation limit on deposits with banks, building societies and credit unions that fail from £35,000 up to a total of £50,000 for each customer's claim. This increase applies from Tuesday 7 October 2008.

Customers with joint accounts will be eligible to claim up to £100,000 between them.

What has changed?

The compensation limit for savers has risen from £35,000 to £50,000. This applies to each customer for the total of their deposits with a bank or building society or credit union, regardless of how many accounts they hold with each one. Joint account holders will be able to claim up to £50,000 each on all accounts they have with one bank, building society or credit union, up to a total of £100,000 between them.

How will this affect me?

It is unlikely to affect you unless the bank, building society or credit union you deposit your money with fails (is declared to be in default).

What if I have more than one account?

If you have more than one account in banks or building societies that are part of a larger group, you can claim up to the limit of £50,000, for each account so long as each of the banks or building societies are separately authorised by the FSA.

However, if each of the banks or building societies are not separately authorised, but are covered by the parent company's authorisation, the Financial Services Compensation Scheme (FSCS) would pay compensation up to the limit of £50,000, regardless of how many different accounts you hold.

Check our Register to find out the status of any bank, building society or credit union you deposit money with. Or you can call our Consumer Helpline on 0845 606 1234 (call rates may vary).

What if I have more than £50,000 in a bank, building society or credit union?

£50,000 is the maximum level of compensation per saver that could be paid by the FSCS. However, depending on how much money is recovered savers may receive more than £50,000 in total, though this is not guaranteed.