Holding savings in the UK means you benefit from the Financial Services Compensation Scheme (FSCS), which is designed to give you absolute confidence in the security of your money. To ensure this protection remains clear and up-to-date, there are adjustments coming to the deposit protection limits on 1 December 2025.
Now is the perfect time to understand these simple changes and appreciate how the FSCS continues to provide a secure foundation for your savings.
The Financial Services Compensation Scheme (FSCS) is the UK’s official safety net for customers of authorised financial firms. It protects your money if a bank, building society, credit union, or other UK-regulated financial firm collapses and is unable to pay you any compensation.
FSCS was set up by the UK government in 2001 and operates as an independent organisation with its own board. However, it’s overseen by two financial regulators: the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
What is the FCA?
The FCA is the UK’s financial regulator. It’s responsible for protecting consumers, keeping markets fair and transparent, and making sure financial firms treat people properly.
What is the PRA?
The PRA, part of the Bank of England, focuses on the stability of the financial system. It oversees banks, insurers, and other major financial institutions to ensure they are strong enough to withstand problems and operate safely.
Key facts about FSCS:
Under the Deposit Guarantee Scheme Regulations 2015, the PRA must review the deposit protection limit at least every five years. After a consultation in early 2025, the PRA confirmed in its November 2025 that the limit will be increasing.
From Monday 1 December 2025, the FSCS deposit protection limit will rise from £85,000 to £120,000 per eligible person, per authorised firm.
This change, welcomed by the FSCS, represents the first increase to the limit since 2017 and is designed to reflect current economic conditions and strengthen consumer confidence.
“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.”
- Martyn Beauchamp, FSCS Chief Executive
“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.”
- Sam Woods, PRA Chief Executive
Both quotes from: FSCS welcomes higher deposit protection limit of £120,000 | FSCS
It’s also helpful to know how FSCS protection works across different accounts.
If you hold savings account with more than one brand that shares the same banking licence, your balances are combined for FSCS purposes. This means the deposit protection limit applies to your total savings within that banking group, rather than to each individual account.
FSCS also offers protection for temporary high balances - money that may come from major life events such as:
From Monday 1 December 2025, this temporary high balance protection will increase from £1 million to up to £1.4 million for six months.
This enhancement helps ensure that any short-term boost to your savings, especially during important moments in life, remains safely protected.
Overall, the FSCS limit increase to £120,000 offers these key benefits:
The increase in the FSCS protection limit to £120,000 is a welcome boost to financial security for savers across the UK. With broader coverage and stronger safeguards, the higher limit helps ensure your money stays well-protected and supports continued confidence in the financial system.
Whether you’re growing your savings, planning a move, or preparing for a major financial milestone, the enhanced FSCS safety net offers valuable peace of mind. There’s nothing you need to do - the new protection level applies automatically.
Leek Building Society is fully covered by the FSCS. If you have any questions about the updated limits, please feel free to contact us using the number below.
You can learn more about the FSCS limit increase on the FSCS website.
