The FSCS (Financial Services Compensation Scheme) deposit protection increased from £85,000 to £120,000 on 1 December 2025. This means that if you hold deposits or savings with a UK-authorised bank, building society or credit union and it goes out of business, FSCS can compensate you up to the limit of £120,000 per eligible person, per authorised firm.
The savings protection applies to current accounts, savings accounts, cash ISAs and small business accounts. You can check that your bank is protected at https://www.fscs.org.uk/check/check-your-money-is-protected/.
Although it is highly unlikely that a bank or building society would go out of business in the UK, it is not impossible, and the golden rule is still to spread any savings above £120,000 around a number of accounts, with different financial institutions.
Some banks or brands are owned by larger banks, and the limit applies per financial institution, so it is important to check. For example, if you held £70,000 in savings with Ulster Bank and £70,000 in savings with NatWest, you would only be covered for £120,000.
Joint accounts are covered for £120,000 per person, i.e. £240,000 in total.
Temporary High Balance Protection
The temporary high balance protection has also increased, from the previous £1 million to £1.4 million. This covers savings from certain “life events”, such as selling your home, redundancy or a compensation payout, for a period of up to six months.
Further details can be viewed at https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/.
Please note that links will take you to FSCS websites and we are not responsible for their content.
We are always available to discuss any queries or concerns, so just call or drop us an e-mail.