The Financial Services Compensation Scheme (FSCS) has confirmed that the protection limit on eligible deposits will increase from £85,000 to £120,000 from 1 December 2025.
This update means from 1 December 2025, the FSCS provides all eligible customers with compensation of up to £120,000 per bank, if the bank with the funds is unable to repay the money it holds.
The £120,000 limit relates to the combined amount in all the eligible depositor's accounts with the bank, including their share of any joint account, and not to each separate account.
In the case of joint accounts with two account holders, each joint account holder is eligible for compensation up to the £120,000 limit, giving £240,000 in total.
Any total deposits you hold above the limit are unlikely to be covered.
For further information visit the FSCS Website www.fscs.org.uk.