UK FSCS Protection Increased to £120K

From 1 December 2025, the amount of money protected in a UK bank if it fails has risen from £85,000 to £120,000 per person, per bank. This increase was agreed by the Bank of England’s Prudential Regulation Authority (PRA) and is designed to keep pace with inflation and maintain confidence in the banking system. In practice, it means a larger slice of your savings is now covered if the unexpected happens. 

• What is FSCS? 

The Financial Services Compensation Scheme (FSCS) is the UK’s deposit guarantee scheme. If an FSCS-protected bank, building society or credit union fails, FSCS can step in and reimburse eligible customers, usually within a week. It’s funded by financial firms, not directly by taxpayers, and protection is automatic – you don’t need to sign up or pay for it. 

·         United States of America –Federal Deposit Insurance Corporation (FDIC): $250,000

·         United Kingdom (UK) – Financial Services Compensation Scheme (FSCS): £120,000

·         European Union (EU) – National Deposit Guarantee Schemes under the EU Deposit Guarantee Scheme Directive (DGSD): €100,000

·         Republic of Singapore – Singapore Deposit Insurance Corporation (SDIC): S$100,000

·         Hong Kong Special Administrative Region – Deposit Protection Scheme (DPS), administered by the Hong Kong Deposit Protection Board: HK$800,000

• Does FSCS cover different currencies? 

Yes. 
FSCS protection applies to eligible deposits held in any currency. 
If compensation is required, FSCS converts all covered currencies into GBP at the prevailing exchange rate on the payout date, before applying the £120,000 limit. 

• Why holding savings in a UK bank (like iFAST Global Bank) is attractive 

For many clients, combining a UK bank account with FSCS protection offers a powerful mix of stability, regulation and access to one of the world’s leading financial centres. As a fully licensed UK bank, iFAST Global Bank is regulated by the Prudential Regulation Authority and the Financial Conduct Authority, and is a member of the Financial Services Compensation Scheme. That means your eligible deposits are protected up to £120,000 per person, per bank – giving you greater peace of mind as you manage your cash and short-term savings. 

• What this means for iFAST Global Bank clients 

If you’re already an iFAST Global Bank client, there is nothing you need to do to benefit from the higher FSCS limit – protection is automatic on eligible deposits. If you hold, or plan to hold, more than £120,000 in cash, you may wish to consider how you spread those funds across different UK-authorised banks so that as much as possible falls within deposit protection limits. Together with the strong FSCS protection and the many benefits offered by our Multi-Currency Current Account, iFAST Global Bank aims to ensure a banking experience that goes beyond traditional boundaries and provides complete peace of mind. 

We hope this update gives you greater peace of mind as you continue your financial journey with us. 

*This information does not constitute financial, investment or tax advice. Protection is provided by FSCS in line with its rules and limits, which may change in future. Eligibility criteria apply. If you are unsure about the right approach for your circumstances, please seek independent advice.