The Financial Services Compensation Scheme (FSCS) has announced that the level of deposit protection in the UK will rise from £85,000 to £120,000 per eligible customer from December. This change – the first increase since 2017 – has been introduced by the Prudential Regulation Authority (PRA) to ensure protection keeps pace with inflation and the rising cost of living.
At its core, the FSCS exists to safeguard customers in the unlikely event that a bank or building society fails. This increase offers greater peace of mind to households, savers, and businesses who want the reassurance that more of their money is protected.
Why the increase?
As the average level of savings has grown significantly over recent years, raising the limit helps ensure the UK’s deposit protection scheme remains one of the strongest globally.
How will this affect banks?
Banks will contribute slightly more to the FSCS to support the higher protection level. The Bank of England has estimated that this increase will represent less than 0.1% of banks’ annual net income, meaning customers benefit from greater protection with minimal impact on banking services.
What this means for Conister Bank customers?
At Conister Bank UK, customer confidence and financial security remain at the heart of what we do. The new FSCS limit means:
- Your eligible deposits will be protected up to £120,000 per person.
- The protection applies automatically; you do not need to take any action.
- You can save, plan, and invest with an added layer of reassurance.
This enhancement to the FSCS continues to strengthen the UK’s banking safety net, supporting savers and the wider financial system.
If you have any questions about FSCS protection or how your deposits are covered, our team is always here to help.