Higher deposit protection: check the product, not the account label
A higher protection limit does not cover every financial product. Distinguish an account from its holdings.
Updated Nov 1, 2026
Does placing an investment in a tax-advantaged account protect its principal?
Effective date and scope
Deposit-protection limits increased on 2025-09-01. The FSC guidance distinguishes the institution-level limit covering principal plus prescribed interest from product eligibility.
Sources [1]
Tax-advantaged accounts are not protected products
DC plans, IRPs and ISAs receive protection when invested in eligible products such as deposits; funds with performance-linked payouts are not protected.
Sources [1]
Applying the distinction to spending reserves
Compare actual holdings, institution-level totals and access on the required date rather than relying on the account label.
No guarantee of returns or liquidity
This case explains the scope of a rule change. Specific guarantees and early-exit outcomes require checking contracts and applicable rules.
Sources
- FSC deposit-protection update, 2025-09-01Accessed Nov 1, 2026