FSCS £85,000 vs £120,000: Which Limit Applies to You?
There are two different FSCS limits. Bank, building society and credit union deposits are protected up to £120,000 per person per firm where the firm failed on or after 1 December 2025. Investments, and pension claims for bad advice or SIPP operator failure, are protected up to £85,000 per person per firm where the firm failed after 1 April 2019. A mis-sold investment or pension transfer is an investment claim, so the £85,000 limit applies, not the £120,000 deposit limit. This guide covers the UK position and is correct as at 16 October 2026.
Why are there two FSCS limits?
The Financial Services Compensation Scheme (FSCS) protects different types of product under different rules, and the limit depends on the type of claim. The Prudential Regulation Authority (PRA) sets the deposit limit, and the Financial Conduct Authority (FCA) sets the investment limit in its Handbook (COMP 10).
From 1 December 2025 the PRA raised the deposit protection limit from £85,000 to £120,000. The investment limit was not part of that change: the FSCS still lists up to £85,000 per eligible person, per firm for investments where the firm failed after 1 April 2019.
Which FSCS limit applies to a mis-sold investment or pension?
If your claim is about unsuitable investment advice, a mis-sold pension transfer, or a failed SIPP operator, it is an investment or pension claim and the £85,000 limit applies. The £120,000 figure you may have seen in the news applies to money held on deposit with a bank, building society or credit union, not to investments.
For pensions, the FSCS says the position depends on the type of failure. For firms that failed after 1 April 2019: where a pension provider fails the FSCS can pay 100% of the claim with no upper limit; where a SIPP operator fails, or where you received bad pension advice, the limit is £85,000 per eligible person, per firm.
Most mis-selling claims on this site, such as unsuitable SIPP investments and defined benefit transfer advice, therefore fall under the £85,000 limit when the firm that gave the advice or ran the SIPP has failed. See our FSCS guide and SIPP mis-selling page for how those claims work.
Do older cases have a lower limit?
Yes. The investment limit depends on when the firm failed, not when you invested. The FSCS lists up to £85,000 where the firm failed after 1 April 2019, up to £50,000 where it failed between 1 January 2010 and 31 March 2019, and for failures before 1 January 2010 100% of the first £30,000 and 90% of the next £20,000, up to £48,000.
The same date tiers apply to pension advice and SIPP operator claims, with a further tier for failures between 3 July 2015 and 31 March 2019 at up to £50,000. Check the default date of the firm concerned on our failed firms register before assuming which limit applies.
What does 'per person, per firm' mean?
The limit is applied to each eligible person and to each failed firm separately. If two different firms that advised you have both failed, each can be assessed against its own limit. You can claim for the same type of loss against a single firm only up to that firm's limit.
The FCA Handbook also says the limit applies to the total of a person's claims in each protected claim category against the firm. Its own example is claims of £70,000 and £20,000 against the same firm, which together receive no more than the £85,000 limit (COMP 10.2.2G).
What if my loss is more than £85,000?
The FSCS can only pay up to its limit, so a loss above £85,000 leaves a shortfall. Depending on the facts, you may be able to pursue the balance from another firm involved, for example a different adviser, or an operator that is still trading, through a complaint to the Financial Ombudsman Service or a court claim.
The Financial Ombudsman Service has a much higher award limit: £455,000 for complaints brought on or after 1 April 2026 about acts or omissions on or after 1 April 2019 (£205,000 for earlier acts). It can only help where the firm still exists and is within its jurisdiction. See FOS or FSCS: which route applies and the FOS guide.
What the FSCS does not cover
The FSCS says it cannot accept claims for poor investment performance, because investments can fall in value. It protects you when an authorised firm has failed and cannot pay, for example because advice was unsuitable and the firm is in default. The advice must also have been given on or after 28 August 1988, and the firm must have been authorised by the PRA or FCA for the regulated activity concerned.
This page gives general information only and is not advice on any individual case. No outcome or recovery is guaranteed. If you think you were given unsuitable advice, you can use our free claim check, and see how compensation is calculated for how redress is worked out.
Sources
FSCS, What we cover: fscs.org.uk/what-we-cover (deposit limit of £120,000 for firms failing after 30 November 2025; investment and pension limits and date tiers). Checked 16 October 2026.
FSCS, Investments: fscs.org.uk/what-we-cover/investments (£85,000 limit, no claims for poor performance, advice given on or after 28 August 1988). Checked 16 October 2026.
Bank of England, Financial Services Compensation Scheme: bankofengland.co.uk (PS24/25 Depositor protection, 18 November 2025; deposit limit increase from £85,000 to £120,000 from 1 December 2025). Checked 16 October 2026.
FCA Handbook, COMP 10.2 Limits: handbook.fca.org.uk/handbook/COMP/10/2.html (£85,000 limit for protected investment business; aggregation guidance COMP 10.2.2G). Checked 16 October 2026.
Financial Ombudsman Service, FCA confirms increase to our award limits (1 April 2026): financial-ombudsman.org.uk. Checked 16 October 2026.