From 1 December 2025, the Financial Services Compensation Scheme (FSCS) deposit protection limit will rise to £120,000. This means if your UK-authorised bank, building society, or credit union goes out of business, FSCS can compensate you from the first penny up to £120,000 per eligible person, per provider. Most customers will get their money back within seven days.
For joint accounts the £120,000 limit applies to each account holder.
If you have a temporary high balance, for example, the result of a house sale or receiving a large inheritance. FSCS protects these balances up to six months. The protection limit for qualifying temporary high balances will also increase to £1.4 million.
Alongside the increased deposit protection limit, FSCS is introducing a refreshed FSCS Protected badge. This badge makes it easier for you to identify financial providers who are protected under the Deposit Guarantee Scheme.
The updated badge will start appearing across branches, banking apps, and promotional materials by from the 1 December. Banks, building societies and credit unions have six months to update their disclosure materials until 31 May 2026.
What is FSCS?
FSCS protects customers when financial services firms fail. If a company goes bust and cannot pay claims, FSCS steps in to compensate you.
Set up by Parliament and funded by the financial services industry, FSCS is independent and free to use if you claim directly.
FSCS covers more than just banks, building societies and credit unions. It also protects:
- Investments
- Pensions
- Financial advice
- Insurance broking
- Mortgage advice and arranging
- Funeral plans
Compensation limits vary by product. Visit the FSCS website for more information.