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UK Raises FSCS Deposit Protection to £120,000 From December 1

The PRA moved above its initial £110,000 plan following consultation feedback that accounted for recent inflation.

Overview

  • Temporary high balance protection rises to £1.4 million for eligible life events, with cover lasting six months.
  • Compensation applies per person per authorised firm and aggregates balances across brands sharing a banking licence.
  • Eligible customers typically receive FSCS payouts within seven days of a firm’s failure.
  • The revision is the first increase since the £85,000 cap was set in 2017.
  • The new limit tops the EU’s €100,000 benchmark but remains below U.S. coverage of at least $250,000 per depositor.