PRA consults on raising FSCS deposit protection above £85,000
The Bank of England's Prudential Regulation Authority opened a consultation on increasing the £85,000 per-bank deposit protection limit, unchanged since 2017.
By Money Guide editorial team
Published:
The Prudential Regulation Authority has launched a consultation on raising the Financial Services Compensation Scheme's deposit protection limit, which has stood at £85,000 per person per banking licence since January 2017.
The headline figure cited in the consultation is £110,000, in line with inflation since the limit was last set. The temporary high-balance limit of £1 million, which protects deposits arising from life events such as a house sale for up to six months, would also be reviewed.
Savers with more than £85,000 currently need to spread money across separate banking licences to keep all of it protected. Several well-known brands share a single licence, so the practical limit can be lower than people expect.
Any change would not take effect before 2027 at the earliest. The consultation closes in August.