Your savings are about to get slightly better protection.
On 18 November, the Prudential Regulation Authority announced that the Financial Services Compensation Scheme (FSCS) deposit protection limit is increasing from £85,000 to £120,000, starting 1 December 2025. This is the first increase since 2017.
In simple terms, it means more of your money is protected if a bank, building society, or credit union were ever to go out of business.
What is the FSCS and why does it matter?
The FSCS is the UK’s official safety net for savers. If a financial institution fails, the FSCS steps in and protects your money, up to a certain limit, per person, per institution.
From 1 December 2025, that protection increases to £120,000 per institution, per person.
You don’t need to register, apply, or change anything. This update happens automatically.
How your savings are protected
If you hold money in a savings product through platforms like Active Savings, and the bank or building society behind that product fails, the FSCS covers your money up to the new £120,000 limit.
Client money held in managed accounts and portfolio services is also kept with UK-licensed banks. These banks are covered by the FSCS too. So even if something went wrong with the provider, your money is still ringfenced and protected.
What this really means for you
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More of your cash is now protected
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No action is needed from you
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Your savings are safer across a wider range of institutions
If you’re someone who holds more than £85,000 in savings with one bank, this change is particularly good news. It might also mean you have more flexibility when deciding where to place your money.
Get in touch
📞 Book a call – 0207 433 6940 📧 Email us your questions – info@aelmarkhams.co.uk
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