From 1 December 2025, the Financial Services Compensation Scheme (FSCS) deposit protection limit increased to £120,000. This means savers with a UK-authorised bank, building society, or credit union are protected up to £120,000 per person, per firm if the institution fails.

Protection for temporary high balances has also risen to £1.4 million. These balances, often linked to major life events such as selling a property or receiving an inheritance, are covered for up to six months.

The increase follows a review by the Prudential Regulation Authority (PRA), which is required to reassess deposit limits at least every five years. The previous limit was £85,000, in place from January 2017 to November 2025.

It’s important to note that accounts held with banks in the same banking group share one protection limit, meaning the £120,000 cap applies to the total balance across all linked accounts, not each account individually.