FSCS Protection Limit Rises to £120,000: What Savers Need to Know

From 1st December 2025, the deposit protection limit offered under the Financial Services Compensation Scheme (FSCS) will rise per eligible saver from £85,000 to £120,000. Here’s why this matters and how you can make the most of it.

What is FSCS protection?

The Financial Services Compensation Scheme (FSCS) is a government-backed scheme that protects your savings. If an authorised bank, building society or credit union fails, the FSCS will repay your eligible deposits up to the protection limit. This protection applies separately to each authorised institution where you hold money (The Charity Bank Limited has its own banking licence). It gives savers confidence that their funds are secure, even in the unlikely event of a financial institution failing.

Why the increase matters

The previous £85,000 limit has been in place since 2017. Over time, inflation eroded its real value, leaving savers with less protection in practice. The new £120,000 limit restores much of that value and makes planning simpler.

Here’s what the increase means for you:

• More of your money is protected – the new limit means you can now keep more funds with one institution (per banking licence) while enjoying enhanced protection.
• Joint Accounts – the protection limit increases in these from £170,000 to £240,000.
• Extra cover for life events – Temporary High Balance protection has also increased, from £1 million to £1.4 million for up to six months. This covers situations like selling a home or receiving an inheritance.

Security with purpose

With greater protection, you have more options for where to keep your money and choosing Charity Bank means combining safety with social impact.

Every pound you deposit is used to make loans to charities, social enterprises and other organisations with a social purpose. That means your savings help fund projects tackling poverty, supporting communities, and driving positive change across the UK.

So, while the FSCS increase strengthens your financial security, saving with Charity Bank also gives you the satisfaction of knowing your money is making a difference.

Find out more

You can view and download our Deposit Guarantee Information Sheet to check your eligibility with Charity Bank. This will be updated to reflect the increased limit from the 1st of December 2025. 

For more information on the scheme, visit www.fscs.org.uk.

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