On 1 December 2025 the Financial Services Compensation Scheme’s (FSCS) deposit protection limit was increased from £85,000 to £120,000. However, the FSCS protection limit for investments remains at £85,000 per person, per firm.
The FSCS states “that if you hold deposits or savings with a UK-authorised bank, building society or credit union and it goes out of business, the FSCS can compensate you up to the new limit of £120,000 per eligible person, per authorised firm”.
If you have a joint account, you can get up to £240,000 of protection. Please note however, that this limit applies to each banking licence. Therefore, if you have savings across multiple banks, but which are part of the same banking group, and share a banking licence, they will be treated as one bank.
Also, from 1 December 2025, more of your savings will be protected following major life events, such as selling your house, or inheriting money. The Bank of England increased the protection for temporary high cash balances from £1 million to £1.4 million. This protection is in place for up to six months following the relevant life event.
For details around the rules of temporary high balances, please visit the FSCS website here https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/.
If you wish to speak to one of our advisors about investing following a major life event, please call us on 01676 523 550.
