Q&As about limit changes


  1. Why is the limit changing?
  2. How is the deposit protection limit being maintained at £85,000 and who is impacted?
  3. Why is there a transition period to the new deposit protection limit?
  4. What happens if I have more than the new deposit protection limit with one deposit taker?
  5. Who does the new deposit protection limit apply to?
  6. Which limit applies to large companies and small local authorities? We understand they are protected from July.
  7. Why didn’t the PRA make an earlier announcement?
  8. How do you decide the new deposit protection limit?
  9. When will the limit be reviewed again?
  10. Why are you consulting on a change to the rules on depositors with aggregate balance over £75,000?
  11. What does a ‘charge, penalty or loss of interest’ include?
  12. If I have deposits of £85k or more across a fixed term deposit account and an instant access account, would I be required to drain my current account or can I break my fixed term deposit?
  13. Are any other FSCS limits changing?
  14. Does the change in the deposit protection limit mean that lots of people will not have as much protection?
  15. Do people have to apply for compensation if a bank fails?
  16. What happens if a bank, building society or credit union fails during the transition period?
  17. Did this review happen because of Euro reducing in value?
  18. Does this new deposit protection limit include temporary high balances if I sell my home?
  19. Are there any other changes that result from the DGSD?
  20. What happens if I miss the deadline for the new deposit protection limit and have money over it?

Why is the limit changing?

How is the deposit protection limit being maintained at £85,000 and who is impacted?

Why is there a transition period to the new deposit protection limit?

What happens if I have more than the new deposit protection limit with one deposit taker?

Who does the new deposit protection limit apply to?

Which limit applies to large companies and small local authorities? We understand they are protected from July.

Why didn’t the PRA make an earlier announcement?

How do you decide the new deposit protection limit?

When will the limit be reviewed again?

Why are you consulting on a change to the rules on depositors with aggregate balance over £75,000?

What does a ‘charge, penalty or loss of interest’ include?

If I have deposits of £85k or more across a fixed term deposit account and an instant access account, would I be required to drain my current account or can I break my fixed term deposit?

Are any other FSCS limits changing?

Does the change in the deposit protection limit mean that lots of people will not have as much protection?

Do people have to apply for compensation if a bank fails?

What happens if a bank, building society or credit union fails during the transition period?

Did this review happen because of Euro reducing in value?

Does this new deposit protection limit include temporary high balances if I sell my home?

Are there any other changes that result from the DGSD?

What happens if I miss the deadline for the new deposit protection limit and have money over it?

Jargon Buster

  • Credit union

    a financial co-operative which is owned and controlled by its members.
  • Deposits

    money placed in a bank or similar institution to earn interest or for safe-keeping.
  • DGSD

    Deposit Guarantee Schemes Directive

  • EEA

    European Economic Area.
  • Eligible

    qualifying for compensation under Scheme rules.