The Financial Services Compensation Scheme (FSCS) deposit protection limit could increase from £85,000 to £110,000 under proposals outlined by the Prudential Regulation Authority (PRA).
The deposit protection limit is the maximum amount of money the FSCS protects if a depositor's bank, building society, or credit union becomes insolvent. It has remained at £85,000, per person, per institution since 2017. The proposed increase accounts for inflation over the past seven years and aims to reassure consumers about the security of their deposits in UK-authorised financial institutions. If implemented, the new limit will apply to firms that fail from 1 December 2025. PRA deputy governor for prudential regulation and CEO Sam Woods said: "Confidence in our financial system i...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
