FSCS Deposit Protection Limit to Rise from £85,000 to £120,000 from 1st December 2025

The Prudential Regulation Authority (PRA) has confirmed that the Financial Services Compensation Scheme (FSCS) deposit protection limit will increase from £85,000 to £120,000 from the start of December.

The new threshold applies per depositor, per PRA-authorised bank, building society or credit union. The PRA have confirmed that HM Treasury has approved the change.

Temporary High Balances Limit Also Rising:

Alongside the core protection limit, the cap for Temporary High Balances (THBs) will increase from £1 million to £1.4 million on 1st December.

THB protection applies to qualifying life events that can temporarily increase a customer’s account balance, such as buying or selling a house, receiving an inheritance or insurance claim pay-outs.

It is worth checking whether a banking group is operating multiple brands under a single licence. This means you would only receive a single protection limit for the total amounts held across those brands.