Savings protection in the UK explained: FSCS, ISAs, NS&I, AER
Short answer: keep your emergency fund in an easy-access savings account or Cash ISA at an FSCS-protected bank (the FSCS deposit limit is £120,000 per person, per authorised bank, from 1 December 2025). Fixed-rate bonds suit money you won't touch for 1–5 years. Invest long-term money in a Stocks & Shares ISA. NS&I is backed by HM Treasury. Crypto is high risk and not FSCS-protected.
FSCS: £120,000
From 1 December 2025 the FSCS deposit protection limit is £120,000 per person, per authorised bank or building society (source: fscs.org.uk). Investment claims are covered up to £85,000.
ISAs
Cash ISA and Stocks & Shares ISA: tax-free interest, gains and dividends within a £20,000 annual allowance. Source: gov.uk/individual-savings-accounts.
NS&I
National Savings & Investments is backed by HM Treasury: 100% of savings are secure.
AER
Annual Equivalent Rate includes compounding. Watch for temporary bonuses.
Robo-advisors
Charge a platform/management fee plus fund costs. Compare the total cost.
Crypto & the FCA
FCA registration is for anti-money laundering; it does not mean the FCA protects your crypto.
Compare: Easy-access savings & Cash ISAs · Fixed-rate bonds · NS&I & Premium Bonds · Stocks & Shares ISA, robo-advisors & apps · Crypto (high risk) · quiz
Frequently asked questions
FSCS: £120,000
From 1 December 2025 the FSCS deposit protection limit is £120,000 per person, per authorised bank or building society (source: fscs.org.uk). Investment claims are covered up to £85,000.
ISAs
Cash ISA and Stocks & Shares ISA: tax-free interest, gains and dividends within a £20,000 annual allowance. Source: gov.uk/individual-savings-accounts.
NS&I
National Savings & Investments is backed by HM Treasury: 100% of savings are secure.
AER
Annual Equivalent Rate includes compounding. Watch for temporary bonuses.