Greater Peace of Mind: FSCS Deposit Protection Limit Rises to £120,000

We are pleased to announce an important update to the protection available for your savings. From 1 December 2025, the Financial Services Compensation Scheme (FSCS) deposit protection limit will officially rise to £120,000.

This significant increase is designed to maintain consumer confidence and ensure a greater portion of your money is protected should a UK-authorised financial provider, like Gateway Credit Union, ever fail.

What the New Limit Means for You

The new £120,000 limit applies per eligible person, per UK-authorised provider. This means:

• Individual Accounts: If you hold an individual account, the FSCS can compensate you from the first penny up to £120,000.
• Joint Accounts: For joint accounts, the £120,000 limit applies to each account holder, meaning a joint account is protected up to £240,000 in total.
• Compensation Timeline: In most cases, the FSCS aims to get your money back to you within seven days.

Note: The increase from the previous limit of £85,000 is the first rise since 2017 and reflects a review to keep pace with inflation and current economic conditions.

Temporary High Balances also Increased

The FSCS also offers protection for certain Temporary High Balances (THBs) that result from specific life events, such as:

• The sale of a house
• Receiving a large inheritance
• Insurance payouts

The protection limit for qualifying Temporary High Balances will also increase, rising to £1.4 million. This protection applies for up to six months from the date the funds were first deposited.

Recognising FSCS Protection

Alongside the increased deposit protection limit, the FSCS is introducing a refreshed FSCS Protected badge.

Look out for this badge on our website, in our branch, and on our documentation. It makes it easier for you to identify financial providers, like Gateway Credit Union, whose eligible deposits are protected under the Deposit Guarantee Scheme.

Understanding the FSCS

What is the FSCS?

The FSCS is the UK's statutory fund of last resort for customers of authorised financial services firms. It is:

• Independent: Set up by Parliament.
• Free to use: If you claim directly.
• Funded by the industry: It is not a government body and is funded by the financial services industry.

The FSCS protects deposits and a range of other financial products when firms fail and cannot pay claims themselves. While we at Gateway Credit Union are focused on deposits, it's worth knowing that the FSCS also covers:

• Investments
• Pensions
• Financial advice
• Insurance broking
• Mortgage advice and arranging
• Funeral plans

Compensation limits vary by product type. For full details on all products and to learn more about the scheme, please visit the official FSCS website.

This increased protection reaffirms your security and confidence in saving with Gateway Credit Union.