FSCS Deposit Protection Limit Increasing
From 1 December 2025, the Financial Services Compensation Scheme (FSCS) deposit protection limit is increasing from £85,000 to £120,000.
If you hold deposits or savings with a UK-authorised bank, building society or credit union and it goes out of business, the FSCS can compensate you, up to the deposit protection limit.
The limit applies per person, so each person named on a joint account is protected separately. It applies to the total deposits you have with any one provider, not to each individual account. For example, if you have accounts with banks that are part of the same banking group and share a banking licence, they are treated as one bank.
The protection for temporary high balances is also rising, from £1 million to £1.4 million. You may be entitled to this protection if your account has a temporary high balance because of a qualifying life event. Examples include buying or selling a house, receiving an inheritance or receiving benefits payable on retirement. The increased protection applies for six months.
