FSCS protection increases

The Financial Services Compensation Scheme (FSCS) has been a cornerstone of financial security for UK savers for decades. Designed to protect your savings deposits in the unlikely event that a bank, building society, or credit union fails, the FSCS ensures that you will not lose your hard earned savings up to a set limit. For many years, this limit was £85,000 per person, per institution, a figure that had remained unchanged since 2017.

What’s changed?

From December 2025, the FSCS protection limit rises to £120,000. Here’s what that means for you:

• • Automatic protection. FSCS protection applies automatically to eligible deposits held with UK-authorised banks, building societies, and credit unions up to £120,000 per person per institution.
  • Joint accounts included. Each account holder gets their own protection, so a joint account could now be safeguarded up to £240,000.

• Temporary high balances. Certain temporary high balances, for example from selling a home, receiving an inheritance, or a large insurance payout, are protected up to £1.4 million per person for up to six months.

What this means for your savings held with us

At No1 CopperPot, we set an internal savings limit of £40,000 per person. This is our own limit to help manage accounts and does not affect FSCS protection. Your savings with CopperPot are protected by the FSCS. If your balance was ever temporarily higher than £40,000, you would still be protected by the FSCS up to £120,000.

Why this change matters

The FSCS protection limit increasing gives savers additional protection and reassurance. The higher limit helps ensure that savings remain well protected, including larger balances held for short periods.

The FSCS increase is great news, offering:

• Peace of mind. Your savings are safer than ever.
• More flexibility. You don’t need to split your money across different institutions just to stay under the old limit.
• Life-event security. Temporary large sums are protected for longer periods.

It’s always important to ensure your bank or building society is UK-authorised and FSCS-eligible, so it’s worth double-checking. You can do this via the FSCS website by clicking here.