The Financial Services Compensation Scheme (FSCS) deposit protection limit has increased from £85,000 to £120,000 per eligible person, per authorised firm, effective 1st December 2025.
This increase strengthens consumer protection and reflects changes in the financial landscape, ensuring greater security for savers across the UK. The FSCS remains a vital safeguard, offering peace of mind that deposits are protected should a bank, building society, or credit union fail.
What Does This Mean for Savers?
From 1st December 2025, deposits up to £120,000 are covered under the FSCS scheme. This applies to individual and joint accounts, with joint accounts enjoying double the protection. The change is designed to enhance confidence in the UK banking system and provide additional reassurance for those with higher savings balances.
Why Has the Limit Increased?
The PRA’s (Prudential Regulation Authority) decision follows a review of economic conditions and aims to maintain robust consumer protection standards. By increasing the limit, the FSCS continues to offer a safety net that reflects modern savings behaviour.
Key Points for Financial Institutions and Customers
- All eligible deposits remain protected under the FSCS scheme.
- This update reinforces the commitment to safeguarding savings and supporting trust in financial institutions.
- Savers with savings accounts, credit cards, and other eligible products can benefit from this enhanced protection.
This update reinforces the commitment to safeguarding savings. All eligible deposits are protected under the FSCS scheme, providing customers with confidence and security.
