Summary
Starting in December, people in the UK will have up to £120,000 of their bank deposits protected if their bank fails. This increase, up from the current £85,000, is the largest change since 2017, aimed at improving confidence in banking safety. The protection automatically applies, so customers do not need to do anything.
Key Facts
- The protection for UK bank deposits will increase from £85,000 to £120,000 in December.
- The change was confirmed by the Prudential Regulation Authority, which oversees UK banks.
- The new limit considers inflation and feedback from consultations.
- The protection covers deposits per person, per bank, even if multiple brands operate under one firm.
- Customers do not need to take any action for the new limit to apply.
- There is a temporary protection increase for high balances, like house sale money, from £1 million to £1.4 million for six months.
- The Financial Services Compensation Scheme funds this protection through levies on financial institutions.
