PRA looking to raise deposit protection limit to £110,000
By Benjamin Chiou
Date: Monday 31 Mar 2025
(Sharecast News) - The Prudential Regulation Authority is proposing to lift the deposit protection limit by £35,000, the first change to its guarantee in eight years.
The regulator wants to raise the protection limit of the Financial Services Compensation Scheme (FSCS) from £85,000 to £110,000, covering day-to-day current accounts and savings that the FSCS typically protects should a depositor's bank, building society or credit union become insolvent.
The PRA said the aim of the change, which takes into account inflation since the limit was last changed in 2017, is to give consumers confidence that their money if "safe".
"Confidence in our financial system is an essential foundation for economic growth," said Sam Woods, deputy governor for Prudential Regulation and head of the PRA.
"We want to support confidence in our banks, building societies and credit unions by raising the amount that people can keep in their account which is covered by the deposit guarantee scheme to £110,000 per person, so all that money is safe even if the firm fails."
Rocio Concha, Which?'s director of policy and advisory, called the plans a "sensible decision" to support confidence. "At a time when the government and regulators are going for growth, this decision is a reminder that strong consumer protections and economic growth go hand in hand."
If taken forward, the new rules will apply from 1 December.
The PRA said it is also looking at other ways to improve consumer protection, such as raising the limit applicable to certain "temporary high balance claims" from £1m to £1.4m. These would affect certain life events like buying or selling a house and payouts from insurance policies.
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