FSCS increases deposit protection limit to £120,000

The PRA has confirmed that the FSCS deposit protection limit will rise to £120,000 from 1st December 2025.

The deposit protection limit was last updated in 2017 to its current limit of £85,000. The increase reflects the latest inflation data and gives savers greater certainty that more of their money is protected. 

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. 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, chief executive of the FSCS, 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, chief executive of the PRA, added: “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.”