FSCS LIMIT INCREASE

01 Dec 2025

From 1 December 2025, the Financial Services Compensation Scheme (FSCS) deposit protection limit will increase to £120,000.

This means that if your UK-authorised bank, building society, or credit union were to fail, FSCS can compensate you for the first penny up to £120,000 per eligible person, per provider. Most customers receive their money back within seven days.

For joint accounts, the £120,000 protection limit applies to each account holder.

Temporary High Balances

If you hold a temporary high balance – for example, following a house sale or receipt of a large inheritance – FSCS provides protection for up to six months. The protection limit for qualifying temporary high balances will also increase to £1.4 million.

FSCS Protected Badge

Alongside the increased protection limit, FSCS is introducing a refreshed FSCS Protected badge. This makes it easier to identify financial providers covered under the Deposit Guarantee Scheme.

The updated badge will begin appearing across branches, banking apps, and promotional materials from 1 December 2025. Banks, building societies, and credit unions have until 31 May 2026 to update their disclosure materials.

What is FSCS?

FSCS protects customers when financial services firms fail. If a firm goes out of business and cannot pay claims, FSCS steps in to provide compensation.

Set up by Parliament and funded by the financial services industry, FSCS is independent and free to use when you claim directly.

FSCS Protection Covers

• Banks, building societies, and credit unions
• Investments
• Pensions
• Financial advice
• Insurance broking
• Mortgage advice and arranging
• Funeral plans