There's Been a Limit Increase on FSCS Protection

As cash rates have been higher in last few years, many people currently have larger sums of cash in banks and building societies.

To keep in line with inflation, the Financial Services Compensation Scheme (FSCS) has increased the protection limit on deposits and/or savings within a UK authorised bank or building society to £120,000 from 01 December 2025. For a joint account, this means the total protection is now £240,000.

This means that you now have an extra £35,000 single or £70,000 joint protection for your cash savings.

Also increased is the temporary high balance protection, which protects £1.4 million for up to six months, where you are holding this money as a result of a major event - such as receipt of an inheritance or proceeds from a house sale.