The safest bank account in the UK

Up to £120,000 per person, every account with a UK-licensed bank, building society or credit union is equally safe: the Financial Services Compensation Scheme (FSCS) repays it if the firm fails, whatever the bank's size or credit rating. That includes current accounts, savings accounts, cash ISAs and fixed-term bonds. The one account with no limit is NS&I, where every pound is backed by HM Treasury. What makes an account less safe is being outside the scheme (e-money accounts, a bank's overseas entity) or holding more than £120,000 with one banking licence.

Which accounts are protected, and how much

Is a current account as safe as a savings account?

Yes. The FSCS protects current accounts in exactly the same way as savings accounts, cash ISAs and bonds, and adds everything you hold with one licence holder together. The PRA's own example: with £80,000 in savings and £50,000 in a current account at the same bank, the FSCS pays £120,000 and £10,000 is at risk. The limit caps how much is protected, not how much an account can hold, and an overdraft or loan with the same bank is not deducted from what you are paid (FSCS protection explained).

Is an app bank account as safe as a high-street one?

If the app is a bank with its own UK licence, yes: its deposits carry the same £120,000 protection as a high-street bank's, even though most app banks have no credit rating. The question to ask is whether the account is a bank deposit at all. Several money apps hold customer money as e-money, which is safeguarded rather than protected, and Revolut has been moving UK customers in batches from its e-money company, Revolut Ltd, to its bank, Revolut Bank UK Ltd, licensed in March 2026. Each bank's page on this site says which licence it uses and whether the FSCS covers it; where each savings app holds your money does the same for apps.

The safest way to keep more than £120,000

Above the limit, which bank you keep money with starts to matter, whether that is a house deposit or several million. In order of how much protection each step adds:

1. Spread it across separate banking licences, not brands. Halifax and Bank of Scotland share one licence; HSBC UK, first direct and M&S Bank share one; NatWest and Ulster Bank share one. Lloyds and Halifax are separate, so each gets a full limit (which UK banks share a licence).
2. Use a joint account where it fits: two holders are protected to £240,000 at one licence.
3. Check for a temporary high balance. Money from selling your main home, an inheritance, redundancy, divorce or an insurance payout is protected up to £1.4 million for six months. Moving it to another bank does not restart the six months, and a second home does not qualify.
4. Use NS&I for money you want fully government-backed: it is outside the FSCS because HM Treasury backs every pound (is NS&I safe?).
5. Favour higher-rated banks for whatever is still above the limit. A credit rating is the agencies' opinion of how likely a bank is to need the FSCS at all.

Licences also change. When one bank's business moves into another's, two limits become one on the transfer day, as Co-operative Bank and Coventry customers face on 1 January 2027 (FSCS protection when banks merge).

The safest banks to keep money with, by credit rating

The 10 highest-rated UK banks by their current long-term ratings from S&P, Moody's and Fitch, as of 7 November 2026. Brands on the same licence share these ratings and one FSCS limit.

The full list, with outlooks, owners and the well-known banks that have no rating, is in the safest UK banks ranked by credit rating.

What happens to your account if the bank fails

You do not need to claim. The FSCS uses the bank's own records and aims to pay protected deposits within seven working days, by transfer or cheque; temporary high balance claims can take up to three months. Protected deposits are excluded by law from a bail-in. Often a failing bank's accounts are moved to another bank instead and customers keep using them (what happens if a bank goes bust).

Frequently asked questions

What is the safest bank account in the UK?

Up to £120,000 per person, any account with a UK-licensed bank, building society or credit union is equally safe, because the FSCS repays it if the firm fails, whatever the bank's size or rating. NS&I is the only provider whose accounts are 100% backed by HM Treasury with no FSCS limit. Above £120,000, spread money across separately licensed banks and favour higher-rated ones.

Which is the safest bank to keep money in?

Up to £120,000 per person, any UK-licensed bank or building society is equally safe, because the FSCS protects that much at each banking licence whatever the bank's rating. By current credit rating, the highest-rated UK bank is Handelsbanken (AA), followed by Bank of Scotland, HSBC Bank, HSBC UK Bank, Lloyds Bank, NatWest and Royal Bank of Scotland (AA-). Ratings matter for money above the limit.

Is it safe to keep more than £120,000 in one bank?

Anything above £120,000 per person at one banking licence is not FSCS-protected unless it is a temporary high balance. Brands that share a licence share the limit, so splitting money between Halifax and Bank of Scotland, for example, does not add protection. Splitting between separately licensed banks, a joint account or NS&I does.

What is the safest way to keep millions in the UK?

No single bank account protects millions. The FSCS covers £120,000 per person at each banking licence (£240,000 in a joint account), so a large sum is protected by spreading it across separately licensed banks, or for six months up to £1.4 million if it comes from a qualifying life event such as a house sale or inheritance. NS&I is backed by HM Treasury rather than the FSCS. Whatever remains above the limits is safest with the highest-rated banks.

Where is the safest place to put money from a house sale?

Proceeds from selling your main home are a temporary high balance: protected by the FSCS up to £1.4 million for six months from the date the money became yours, at a UK-licensed bank or building society. Moving it to another bank does not restart the six months. For longer, spread it across separately licensed banks or use NS&I, which is backed by HM Treasury.

Are current accounts FSCS protected?

Yes, current accounts are protected in exactly the same way as savings accounts and cash ISAs. Everything you hold with one banking licence is added together and protected up to £120,000 in total.

Is an e-money account as safe as a bank account?

No. E-money firms such as Wise, PayPal and prepaid card providers are not banks, so their balances are not FSCS-protected. The firm must safeguard customer money separately from its own, which protects it from the firm's creditors but carries no compensation limit or payout timetable.

Is NS&I safer than a bank?

NS&I is backed by HM Treasury, so all money held with it is protected without the FSCS limit. For balances up to £120,000, a UK-licensed bank's FSCS protection is the practical equivalent; NS&I matters for larger sums.

Does a bank's credit rating make my account safer?

Not within the FSCS limit, where protection is identical at every UK-licensed bank. A rating is the agencies' opinion of how likely the bank is to fail at all, which matters for money above £120,000 at one licence.