FSCS welcomes higher deposit protection limit of £120,000 – giving people confidence their money is protected
The Financial Services Compensation Scheme (FSCS) welcomes today’s announcement by the Prudential Regulation Authority (PRA) confirming that the FSCS deposit protection limit will rise to £120,000 from 1 December 2025.
The deposit protection limit was last updated in 2017 to its current limit of £85,000. The announced increase reflects the latest inflation data and gives savers greater certainty that more of their money is protected. This strengthens trust and confidence in the UK financial system, which are key foundations for financial stability and economic growth.
From December, if a UK-authorised bank, building society or credit union goes out of business, FSCS will compensate eligible customers up to the new limit of £120,000, per person, per authorised firm. Customers will typically get their money back within seven days of the firm going out of business.
The limit for qualifying temporary high balances will also rise to £1.4m. This can happen, for example, when someone sells their home or after other life events where consumers may have a large amount in their account for a short time. FSCS protects temporary high balances for up to six months.
To help people identify banks, building societies and credit unions with protected deposits, FSCS is also rolling out its refreshed ‘FSCS Protected’ badge from today. The badge gives people confidence that their money is safe. FSCS research shows over three quarters of people say they would choose a financial provider that displays the ‘FSCS Protected’ badge over one that didn’t.
Martyn Beauchamp, FSCS Chief Executive, said;
“Whether it’s everyday cash, rainy-day savings or temporary high balances after a big life event like selling a home, everyone wants to know their money is safe. That’s why this increase in deposit protection matters. From December, even more of consumers’ money will be covered, from the first penny up to £120,000.
“Our refreshed ‘FSCS Protected’ badge makes it easy to see where savings and deposits are protected, giving consumers confidence when choosing where to put their money. That reassurance builds trust in the financial services industry and supports financial stability and growth, with around 90% of those who know us saying FSCS protection boosts their trust in the financial services sector. This is a win for consumers, a win for the industry, and a win for the economy.”
Sam Woods, PRA Chief Executive, said:
“This change will help maintain the public’s confidence in the safety of their money. It means that depositors will be protected up to £120,000 should their bank, building society or credit union fail. Public confidence supports the strength of our financial system.”
The PRA’s announcement follows its consultation on depositor protection earlier this year, with industry feedback shaping the final measures, including the updated deposit protection limit.
FSCS will continue to work with the PRA and industry partners to raise awareness of the new limit and the ‘FSCS Protected’ badge, supporting firms during the transition from 1 December until 31 May.
For details on how FSCS protects money held in banks, building societies and credit unions visit the FSCS website.
Media enquiries:
Email: publicrelations@fscs.org.uk
Contact: Maria Goodall (07825 745 790)