From Monday 1st December 2025 the Financial Services Compensation Scheme (FSCS) eligible deposit protection limit will increase from £85,000 to £120,000 per person, per authorised UK firm.
This means that if a bank, building society, or credit union goes out of business, the FSCS can compensate you up to the new limit of £120,000 per person, per UK-authorised firm. For joint accounts you will be covered up to £240,000, and anything over £120,000 held per person is unlikely to be protected.
It's great news for savers. Not only does the proposed increase take inflation into account since the limit was last changed, it could also give you further peace of mind that your money is safe.
This will apply to money up to £120,000 for accounts held across Manchester Building Society and Newcastle Building Society.
More of your savings will be protected after major life events
If you have a larger amount of cash because of a significant life event - such as selling your main home or receiving an inheritance - this may qualify for protection under the FSCS as a temporary high balance.
This cover currently has a limit of £1 million and lasts for up to six months after the event. From 1 December 2025, the limit will increase to £1.4 million, still protected for up to six months. You don’t need to take any action to activate this protection, but if your institution fails, you would need to provide evidence of where the funds came from.