Deposit Protection Limit

From the start of December, UK bank customers will benefit from an increase to the maximum amount they would be reimbursed for if their bank were to fail. 

The Prudential Regulation Authority (PRA) has today confirmed the deposit protection limit, which applies to the Financial Services Compensation Scheme, will protect up to £120,000 of a depositor’s money should their bank, building society or credit union fail. 

This increases the limit from the current £85,000 which was set in 2017. It is also more than the previous PRA proposal of £110,000, which has been changed in light of consultation feedback and to reflect the latest inflation data.

This increase in the deposit protection limit is the latest in a series of regulatory thresholds to be updated by the PRA, ensuring the rulebook is modernised and fit for today’s circumstances.