Application provision

4.1 This Chapter applies only to the FSCS.



This Chapter applies only to the FSCS.



The maximum compensation sum payable for the aggregate eligible deposits of each depositor is £85,000, save that additional compensation may be payable in cases to which 4.3 or 4.4 apply.

Additional Notes

[Note: Art. 6(1) of the DGSD]

[Note: Regulation 7A of the deposit guarantee scheme regulations provides for a transitional maximum compensation level of £85,000 until 31 December 2015 for depositors who were, or would have been, eligible for compensation before 3 July 2015 and are eligible for compensation on and after 3 July 2015.]



Subject to 4.4, the maximum compensation sum payable for a temporary high balance is £1,000,000, save that no limit shall apply to the compensation payable for a temporary high balance arising from a payment in connection with personal injury or incapacity.

Additional Notes

[Note: Art. 6(2) of the DGSD]



  1. (1) The maximum compensation sums in 4.2 and/or 4.3 are temporarily increased if, following the death of a holder of a joint account in which an eligible deposit is held:
    1. (a) the deceased’s share passes automatically to at least one other depositor, and
    2. (b) at least one person is:
      1. (i) an individual absolutely entitled to the whole or part of the eligible deposit (including under a trust an individual with a vested beneficial interest in the eligible deposit as at the compensation date); or 
      2. (ii) a trustee holding the eligible deposit on behalf of individuals who do not have a vested beneficial interest in it as at the compensation date (treating co-trustees as a single person, in accordance with 6.5);
  2. (2) the temporary increase under (1) is calculated by dividing each maximum compensation sum that would have been attributable to the deceased between each person referred to in (1)(b);
  3. (3) in the absence of contrary provision, such division shall be made equally to the nearest penny;
  4. (4) where more than one holder of the joint account dies, the provisions of this rule are cumulative; and
  5. (5) any increase in a maximum compensation sum under this rule applies for a period of six months, beginning with the relevant date of death.