Why £85,000 is the Maximum You Should Keep in Any UK Bank Account
Smart savers know: £85,000 is the magic number.
If you’ve got cash sitting in a UK bank account, you need to know about the Financial Services Compensation Scheme (FSCS)—and why keeping more than £85,000 in one place could be a costly mistake.
At MoneyLad.co.uk, we’re all about protecting your hard-earned money. Here’s why you should never exceed £85,000 in a single UK bank account—and how to keep your savings 100% safe.
The £85,000 Rule: Your Savings Safety Net
The FSCS is the UK’s deposit protection scheme. It guarantees:
- ✅ Up to £85,000 per person, per bank (or £170,000 for joint accounts).
- ✅ Protection if your bank collapses—but only up to the limit.
What happens if you have more than £85,000?
- The excess amount isn’t protected.
- If the bank fails, you could lose it.
Real-World Example:
- You have £100,000 in Barclays.
- If Barclays goes bust, the FSCS covers £85,000—but the remaining £15,000 is at risk.
Lesson: Never keep all your eggs in one banking basket.
How to Stay Fully Protected
1. Spread Your Money Across Different Banks
Since the FSCS limit applies per banking institution, you can protect larger sums by splitting them.
💰 Example:
- £85,000 in Lloyds
- £85,000 in NatWest
- £85,000 in Santander
- → All £255,000 is fully protected (because each bank has a separate licence).
⚠️ Watch Out: Some banks share licences!
- Lloyds, Halifax & Bank of Scotland = one £85k limit (same parent company).
- HSBC & First Direct = one £85k limit.
Always check your bank’s FSCS status.
2. Use Joint Accounts for Extra Protection
- A joint account gets £170,000 protection (£85k per person).
- Great for couples with large savings.
3. Temporary High Balances: The £1 Million Exception
If you’ve recently sold a house, received inheritance, or won compensation, the FSCS offers temporary protection up to £1 million—but only for 6 months.
After that? Back to the standard £85k limit. Don’t get caught out!
What Happens If You Ignore This Rule?
- You take on unnecessary risk. Banks can fail (remember Northern Rock?).
- You might lose unprotected cash. The FSCS won’t cover a penny over £85k.
When TV Predicted Reality: The “Years and Years” Bank Crisis
BBC’s 2019 drama Years and Years featured a terrifyingly accurate financial warning when character Stephen Lyons (played by Rory Kinnear) lost nearly £1 million in a bank collapse – and only received £85,000 back from the FSCS.
Key details they got right:
- The exact £85,000 compensation limit (no dramatic exaggeration)
- The agonizing wait for payouts during a crisis
- How unprotected savers became desperate overnight
Years and Years is a BBC drama, not financial advice. But its economic research was alarmingly precise.
Writer Russell T Davies worked with economists to make these scenes authentic. As banking expert Dr. Helen Peters (a consultant on the show) later confirmed: “We showed the maths exactly as it would happen – pound for pound.”
The solution was always there: Had Lyons split his million across 12 banks, every penny would have been protected. Art imitated life – now let life learn from art.
Final Tip: Regularly Check Your Balances
Savings grow, and banks merge. What was safe last year might not be today.
Action Plan:
- List all your accounts & balances.
- Check which banks share licences.
- Move excess cash to a new bank if needed.
Bottom Line
£85,000 is the golden number for UK savers. Expose more, and you’re gambling with your money.
At MoneyLad.co.uk, we believe in smart, stress-free saving. Protect your cash—because no one else will.
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