From 1/12/25 the Financial Services Compensation Scheme (FSCS) deposit protection rose to £120,000 (having previously been £85,000).
This means that if you hold deposits or savings with a UK-authorised bank, building society or credit union and it goes out of business, FSCS can compensate you up to the new limit of £120,000 per eligible person, per authorised firm.
FSCS also protects temporary high balances because of a ‘qualifying life event’ (such as the proceeds of a house sale, receiving an inheritance or a redundancy payment) for a period of up to 6 months up to the new limit of £1.4 million (having previously been £1 million).
These protections apply to money held on behalf of clients in your firm’s client account, and information should be provided in your standard terms of business to clients about them. Please ensure that you update the figures accordingly.
Further information can be found on the FSCS website here.