UK subsidiaries of overseas banks: FSCS protection explained

Many banks operating on UK high streets and in UK savings tables are owned by overseas parents. Whether your money is protected by the Financial Services Compensation Scheme (FSCS) does not depend on who owns the bank; it depends on how the bank is authorised here. The FSCS protects eligible deposits up to £120,000 per person, per authorised firm, and it can only protect money held by UK branches of authorised banks and building societies¹. The limit rose to £120,000 on 1 December 2025, from the previous £85,000².

The distinction that matters is between a UK subsidiary, a separate company authorised and regulated in the UK, and a UK branch of an overseas bank, which operates here under the parent's home-country authorisation. A UK subsidiary is covered by the FSCS in the same way as any British bank. A branch may instead rely on its home country's deposit guarantee scheme. The rules come from UK regulators, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), and the FSCS follows them³.

FSCS protection: up to £120,000 per person, per bank

The FSCS protects eligible deposits up to £120,000 per person, per firm¹. The limit applies to individuals and companies, not to accounts, so it covers everything you hold with one authorised firm together, not each account separately⁵. For banks, building societies and credit unions, the FSCS describes this as £120,000 per person, per banking licence⁶.

A deposit is money in accounts such as current and savings accounts, including cash ISAs⁷. The Bank of England lists the covered products as current accounts, savings accounts, cash ISAs and savings bonds⁴. So a current account, an easy access savings account and a cash ISA at the same bank all count together towards the single £120,000 limit, not three separate limits.

The £120,000 figure has applied since 1 December 2025, when the deposit protection limit rose from £85,000². The FSCS confirmed in March 2026 that it now protects eligible deposits from the first pound up to £120,000 per person, per authorised firm⁸. The same £120,000 per person, per institution figure is given for savings and current accounts in Northern Ireland by the Consumer Council⁹.

You do not have to live in the UK for the protection to apply, but the bank or building society holding your money must be UK authorised¹⁰. The FSCS states plainly that "the customer does not have to live in the UK for FSCS protection to apply but the bank or building society must be UK authorised"¹⁰. That rule matters for anyone banking from abroad with a UK-authorised firm, including a UK subsidiary of an overseas group.

UK subsidiary or UK branch: authorisation decides the cover

Overseas banks can enter the UK market in two ways, and the difference decides what protects your money. A UK subsidiary is a company incorporated and authorised here in its own right: it holds its own banking licence, is regulated by the PRA and FCA, and its deposits are covered by the FSCS like any domestic bank. A UK branch is not a separate licensed company; it is the overseas bank operating in the UK under its home-country authorisation, and deposit protection may come from the home country's scheme instead.

The Prudential Regulation Authority's depositor protection rules, set out in its November 2025 policy statement, apply to overseas firms with permission to accept deposits where the deposits are held by a UK branch or subsidiary of the firm³. The FSCS itself states the boundary: "We can only protect money held by UK branches of authorised banks and building societies and credit unions"¹. So the question for a saver is not where the parent company is based, but whether the entity taking your deposit is authorised in the UK.

Which? gives a worked illustration of how this plays out with real banks. Overseas banks based outside the European Economic Area, such as the Indian bank ICICI, have to be authorised by the FCA to operate in the UK, and when they are, their UK customers are covered by the FSCS¹¹. In other words, a foreign parent does not remove FSCS protection, provided the UK entity taking deposits is authorised here¹¹.

The position after Brexit also shows the boundary running the other way. If you are based in the UK with a UK-authorised bank, building society or credit union, the FSCS still protects your money¹¹. But a UK citizen living in the EEA who banks with an EEA branch of a UK firm is no longer covered by the FSCS; an EEA scheme in the country they are banking in has taken over¹¹. The same point is made in Which?'s guide to savings safety¹². Protection follows the authorisation of the entity holding the deposit and where the risk is based, not the nationality of the customer or the parent company.

Banks located outside the UK are not covered by the FSCS

The FSCS's protection stops at money held by UK-authorised deposit takers. Its own eligibility guidance repeats the rule: FSCS can only protect money held by UK branches of authorised banks and building societies¹³. If you hold money with a bank that operates only abroad, with no UK authorisation, the FSCS has no role, and any protection depends on the deposit guarantee scheme of the country where the bank is based.

This is worth stating plainly because it is easy to assume the £120,000 limit travels with a brand. It does not. A bank that advertises in the UK and takes UK customers through a UK-authorised entity is covered; the same brand serving you from an office abroad, with no UK licence, is not. The FSCS's "can't find your bank" guidance gives the example that it cannot protect you if an e-money firm or payment services firm fails, and the same logic of authorisation applies throughout¹³.

For UK residents the practical rule is simple: check that the entity holding your deposit is authorised here before you rely on FSCS cover. For people living abroad with UK accounts, the position is more mixed. Risks based in the UK are typically covered, and a UK or EEA-based customer of a UK-authorised firm keeps FSCS protection, but someone banking with a foreign branch of a UK firm abroad will generally be covered by that country's scheme instead¹¹.

One banking licence means one £120,000 limit across brands

The £120,000 limit attaches to the banking licence, not to the brand on the app or the branch. The FSCS states that where banks share a banking licence, "they share protection limits across all the accounts within the banks in that group, not separate limits for each bank"¹. Its deposit limit page puts the same rule in terms of failure: the £120,000 compensation limit applies to the total amount you hold across all accounts with banks in the same group sharing a licence, not to each separate account².

The FSCS's own leaflet gives a worked example. If a current account and a savings account share one firm reference number (FRN) or authorisation number, they are classed as a single firm, and the £120,000 limit is shared across both⁷. The Bank of England makes the same point: anyone with accounts under different brands owned by the same firm is still only protected up to £120,000 in total⁴.

Real examples show how much this matters. When Barclays took over Tesco Bank's savings, credit cards and loans, the Tesco Bank brand continued, but the FSCS limit of £120,000 became shared between the two banks¹¹. A saver with £120,000 at Barclays and £120,000 at Tesco Bank suddenly had £240,000 sitting under one licence, with only £120,000 protected. By contrast, Coventry Building Society and The Co-operative Bank continue to exist as separate brands operating under separate banking licences, meaning up to £120,000 is protected with each¹¹.

The same treatment applies to credit unions: branches of the same legal entity are considered the same business, so the FSCS protects up to £120,000 in total across all those accounts¹⁴. The dedicated guide to FSCS protection when bank brands share a licence covers this in more detail, and what happens when a bank is taken over or closes a brand explains what changes for customers.

How to check which banking group a bank belongs to

Before relying on FSCS cover, you can check two things: that the provider is authorised, and which licence it sits under. The FSCS sets out the steps: first check your provider is authorised by the Financial Conduct Authority, then find out whether the particular activity the firm is carrying out for you is regulated by the PRA or the FCA¹⁵. Deposits are a PRA-regulated activity, and your provider must be authorised by the PRA for deposit protection to apply¹⁶.

The quickest visual check is the FSCS Protected badge. The FSCS states that the badge is displayed by UK-authorised banks, building societies, credit unions, Northern Ireland credit unions and certain overseas firms with branches in the UK¹. It indicates that a PRA-authorised bank, building society or credit union is protected by the FSCS¹⁶. The badge also carries the limit: the FSCS can automatically compensate you up to £120,000 per eligible person, per firm¹⁷.

For the underlying detail, search the FCA Register for the provider. The register shows the firm's status and its FRN; if the status shows authorised, the FSCS may compensate if the firm fails¹⁶. Comparing FRNs is how you find out whether two brands share one licence: the same FRN means one firm and one shared £120,000 limit, different FRNs mean separate limits⁷. The FSCS also has a check service for confirming whether your money is protected¹, and a page for firms you cannot find on its lists¹³.

If a bank you use is not on the FSCS's lists and not on the FCA Register as an authorised deposit taker, treat any FSCS protection as unconfirmed before depositing. This is the step that catches the branch-versus-subsidiary question: an overseas bank's UK branch will appear on the register with its permissions, and the FSCS badge tells you whether it is one of the overseas firms with UK branches whose deposits are protected¹.

Joint accounts: £240,000 for two holders

Joint accounts are eligible for FSCS protection up to the same limit of £120,000 per eligible person¹. Because each named holder counts separately, a joint account with two holders is protected up to £240,000 in total. The Bank of England states it directly: "a joint account with two holders would be protected up to £240,000"⁴. MoneyHelper gives the same figure: two account holders could deposit £240,000 safely¹⁸.

The FSCS's own leaflet works the example through: FSCS would protect up to £240,000 of savings in a joint account, £120,000 for each named account holder⁷. The Building Societies Association puts it in household terms: the maximum amount covered for a couple would be £240,000¹⁹.

Two rules govern how the joint limit interacts with everything else on this page. First, if you have an individual account and a joint account within the same banking group, the £120,000 compensation limit applies across all these accounts, not to each separate account¹. Your half of the joint money counts together with your sole money at the same licensed firm. Second, the joint limit follows the licence, so a joint account and a sole account at two brands sharing one licence still share one £120,000 allowance per person². The narrow guide to FSCS cover on joint accounts covers the detail.

Temporary high balances: up to £1.4 million for six months

Large sums that arrive suddenly, such as the proceeds of a house sale, get extra cover for a limited period. The FSCS protects certain qualifying temporary high balances up to £1.4 million for six months from when the amount was first deposited¹⁶. Its check service describes the same cover: temporary high balances in your bank, building society or credit union account of up to £1.4 million for six months¹.

MoneyHelper gives examples of what counts: certain qualifying temporary high balances up to £1.4 million are covered for six months, such as money from the sale of a house²⁰. Which? lists the same life events, including redundancy payments and retirement benefits, and notes the cover runs for six months compared with the usual £120,000 limit²¹. The FSCS announced the change in March 2026, describing extra cover for temporary high balances of up to £1.4 million, available for six months when receiving a large sum after major life events⁸.

How the £1.4 million temporary cover steps down to the standard limit after six months.

The six months run from when the amount was first deposited, not from the date the bank fails¹⁶. After that window, the balance falls back under the standard £120,000 limit, which is why the FSCS and consumer bodies treat temporary high balance cover as breathing space to move money, not as permanent protection. The Bank of England notes this temporary protection sits above the £120,000 limit for certain types of deposits classified as temporary high balances⁴.

Protecting more than £120,000 across different banks

The FSCS states the position plainly: you can protect more than £120,000 as long as it is spread among deposit takers with different FRNs, and each holds no more than £120,000¹. Its own worked example for someone with £300,000 to protect shows £120,000 in Barclays Bank plc (FRN 122072) as fully protected, with the remainder needing to sit with firms holding different FRNs¹.

The rule that makes this work is that protection is across all accounts held within the bank or banking group, not per account¹⁰. Money held in multiple accounts with multiple banks that are part of the same banking group and share a banking licence is treated as one bank¹. So spreading money works only when the receiving banks hold separate licences, which is why checking FRNs, as above, comes first.

Credit unions follow the same pattern: branches of the same legal entity are the same business, so the £120,000 total applies across all accounts with them¹⁴. And the same limits apply if you used an aggregator to open the account: the FSCS applies the same compensation limits for aggregator-placed deposits as for other bank accounts¹.

For balances above the limit, the narrow guide to keeping savings above the FSCS limit covered sets out the options, and the wider guide to FSCS compensation limits covers how the limits work across products.

Where FSCS deposit protection stops

Several boundaries on FSCS deposit protection catch people out, and most of them turn on the same authorisation test.

E-money and payment services firms. The FSCS states it "can't protect e-money or payment services firms"¹. Its eligibility guidance repeats that it cannot protect you if an e-money firm or payment services firm fails¹³. An FCA policy statement from August 2025 sets out the position in detail: the FSCS may look through the payments firm to compensate its customers if the firm's UK safeguarding bank fails, but "FSCS does not cover cases where the payments firm itself fails"²². The liquidation of Premier Payment Solutions Ltd made the point concrete: the FSCS confirmed it does not cover payment services²³. MoneyHelper describes what happens instead with virtual current accounts: money is kept safe at a different bank under e-money rules, but you would need to make a claim to the administrator if your provider failed²⁴.

Savings platforms and aggregators. The position here is better than many assume. If an aggregator deposited your money with a regulated bank that then fails, it is likely the FSCS will protect it, and the same compensation limits apply as for other bank accounts¹. The protection attaches to the licensed bank holding the deposit. One platform, Chip, states the rule for its own cash ISA: your FSCS protection applies per bank and is shared with any money you already hold with that bank²⁵.

Sole traders and partnerships. A sole trader with a business account and a personal account at the same bank would not be entitled to two separate claims; the limit is £120,000 in total¹⁶. A business partnership is only entitled to a single claim of £120,000, not one claim per business partner¹⁶.

Old figures and other products. Some banks still show £85,000 in their FSCS information, usually because the document predates 1 December 2025². The £85,000 figure also survives in other contexts: the FSCS protects up to £85,000 per person per authorised firm for mortgage advice claims⁵, and older consumer guidance, such as a Which? article from August 2025, still carries the previous deposit figure¹¹. For deposits, the current limit is £120,000¹.

Products that are not deposits. Deposit protection covers current, saving and fixed-term deposit accounts¹. It does not extend to investments or cryptoassets, and the FSCS's guidance on checking protection works through which activities are covered¹⁵. The guide to what the FSCS does not cover lists the exclusions in full.

What happens if a bank fails: automatic payout within seven working days

If a UK-authorised bank, building society or credit union fails, you do not need to make a claim. The FSCS states: "If your bank, building society or credit union has failed you don't need to make a claim. We'll return your money automatically, up to our compensation limit"¹⁷. You will get your money within seven working days of the failure¹.

What happens after a bank fails, from failure to automatic payout.

The FSCS's industry guidance gives the same timescale: if a bank or building society fails, the FSCS will automatically pay back customers' money within seven working days in most cases¹⁰. Its consumer pages add the caveat that more complex cases, including temporary high balance claims, take longer¹⁶. Which? notes that deposit claims are paid within seven days of making a claim, and that the FSCS most commonly pays these claims in two or three days¹¹. The Bank of England confirms payments are typically made within seven days of the firm failing, although complex claims may take longer⁴.

This automatic process is the payoff for the checking this page describes. A saver who confirmed their bank is a UK-authorised subsidiary, or a UK branch whose deposits are FSCS protected, and who kept their balance within the £120,000 per licence limit, has nothing to do when the bank fails: the money comes back on its own. A saver who did not check may find their protection sits with a foreign scheme, an e-money safeguard, or nowhere at all. The guides to what happens if a bank or building society fails and how to claim compensation from the FSCS cover the process in detail, and the overview of the FSCS explains the scheme as a whole.