Ask most people how safe their bank savings are and they will say completely. The official answer is more precise: safe up to £120,000.
How FSCS protection works
On 1 December 2025, the Financial Services Compensation Scheme raised its deposit protection limit from £85,000 to £120,000 per eligible person, per authorised banking group. A couple with a joint account gets £240,000. There is also temporary cover of up to £1.4 million for six months after certain life events, such as selling a house or receiving an inheritance. Beyond those limits, your money's safety rests entirely on the health of the bank holding it.
The catch most people miss
The limit applies per banking group, not per brand. Several well-known banks share a single banking licence, so spreading money across two brands within the same group still means one £120,000 limit between them. And anything above £120,000 with a single group may simply not be covered. For anyone holding serious cash, whether from a business sale, an inheritance or years of saving, the amount above the threshold is effectively an unsecured loan to the bank.
Owning versus lending
This is the distinction physical gold resolves. A gold coin in your safe is not a claim on anyone. It needs no compensation scheme because there is nothing to compensate: you own the asset outright. For wealth above the protected limits, physical gold offers something no savings account can, which is ownership without a counterparty. In the UK, legal tender coins add Capital Gains Tax exemption on top.
Speak to us
This is information, not a sales pitch. If you would like to talk anything through, book a call with the team or phone 0208 064 0076, Monday to Saturday, 8:30am to 6:30pm. When you are ready, our range of tax-free UK gold coins is available to browse at any time.
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Sources
- Bank of England PRA, FSCS deposit limit increased to £120,000 from 1 December 2025
- FSCS, deposit limit increase and temporary high balances
- HMRC Capital Gains Manual CG12602 (currency exemption)
Gold Tier Advisory provides information on physical gold ownership. We do not provide regulated financial advice. The value of gold can go down as well as up.
