Deposit protection: shared banking licences and large cash balances

Deposit protection is assessed by eligible person and authorised institution, rather than by the number of account names or banking apps you use. Two apparently separate brands can share a banking licence, so spreading money between them may not create separate protection limits.

The standard FSCS deposit limit is £120,000 per eligible person per authorised firm for failures from 1 December 2025. Certain qualifying temporary high balances have different protection. These rules concern eligible deposits, not every product described as cash or savings.

Identify the institution behind each account

Start with the account provider's legal name and deposit-protection information. Record the brand separately. An account marketed under a familiar trading name may sit within the same authorised institution as another account you already hold.

FSCS explains shared banking licences and why balances must be considered together. Use its current tools and the Financial Services Register rather than relying on an old list copied into a comparison article.

Repeat the check when opening an account or receiving notice of a relevant provider change. A personal spreadsheet is useful only if the underlying institution information remains accurate.

Add the relevant balances together

For illustration, an eligible individual holds £75,000 with Brand A and £65,000 with Brand B. If both accounts are with the same authorised deposit-taking institution, the combined balance is £140,000. Under the ordinary £120,000 limit, £20,000 would be above that limit, assuming no additional protection applies.

If the accounts instead qualify under separate banking licences, the assessment is different. The useful comparison is therefore between the institutions, not between logos or account types.

Include current accounts and other relevant deposits in the calculation. Do not look only at the new fixed-term account while overlooking money held with the same institution elsewhere. Leave room to consider interest and expected incoming payments rather than treating the opening balance as permanent.

Include each person's share of joint accounts

FSCS's deposit protection explanation describes protection for joint accounts and how an individual's share interacts with their sole accounts at the same institution.

Suppose two eligible people hold £160,000 jointly, assumed for this illustration to be split equally. One also has £50,000 in their sole account at the same institution. Their combined attributed balance is £130,000, while the other's is £80,000. The first person's ordinary-limit excess is £10,000 under those assumptions.

The example does not determine ownership in a disputed or unusual account. Check the actual arrangement. A joint account does not provide an unlimited separate allowance on top of each holder's personal deposits.

Check whether a temporary high balance qualifies

A major life event can produce a large balance for a limited period. FSCS describes temporary high balance protection of up to £1.4 million for six months in most qualifying cases, including some home-sale and inheritance circumstances. Special provisions apply to certain compensation payments.

This is not an automatic six-month extension for any large transfer. The source and circumstances of the funds matter. Establish the applicable start date and keep evidence of the event, entitlement and payment.

Moving the funds does not restart the protection period. An internal note should therefore preserve the original relevant date, not replace it with the date the money reached its latest account.

Plan for the end of temporary protection

Treat temporary protection as a time-limited feature in the cash plan. Identify the date by which the balance may need reassessment and any commitments expected before then. A property purchase can be delayed, leaving money held longer than originally intended.

Keep the decisions about protection, access and long-term investment separate. A need to organise deposits does not by itself mean the money should be invested in assets that can fall in value. Its intended use and timing still matter.

If several family members are involved, make clear whose funds are held and who has authority to move them. Changing account ownership is a legal and tax matter, not merely an administrative way to multiply limits.

Distinguish deposits from other cash-like arrangements

A money market fund, e-money account or investment platform balance may have a different legal structure from a bank deposit. Do not infer deposit protection solely from a cash label, an interest-like payment or an account being accessible through a regulated business.

The FSCS savings checker explains the scope of its checks, including limitations involving e-money and payment services. If using a cash marketplace, understand the underlying deposit-taking institutions and include any direct balances held with them.

Ask the provider to identify the relevant protection arrangement and where the funds are held at each stage. Money moving between a service and a deposit bank can involve more than one operational step.

Keep a usable cash map

Record account owner, institution, current balance, access conditions, protection basis and review date. Store evidence for any temporary high balance with the relevant entry. This gives an adviser a clearer view than a list of account balances alone.

Review after a large receipt, house transaction or change in banking arrangements. The aim is to understand the protection that actually applies while keeping money available for its intended purpose.

Related guides: planning for a large cash sum, after a property sale and receiving an inheritance.