FSCS Limit Increased To £120,000. Good News For Structured Deposit Investors

The UK government has announced that the Financial Services Compensation Scheme (FSCS) deposit protection limit will rise from £85,000 to £120,000, effective from 1st December 2025*.  This means, for UK-structured deposits held with an authorised bank, building society, or credit union, eligible investors will have up to £120,000 of their money protected if the institution fails. The change reflects feedback from the financial sector and updates the limit for the first time since 2017, offering greater security for clients with larger deposits.

With a higher compensation limit, clients can confidently invest larger sums in structured deposit plans, knowing a greater portion of their capital is safeguarded. This provides enhanced peace of mind and also gives investors the flexibility to diversify or consolidate their holdings across institutions without breaching the protection cap.

Structured deposit plans present an attractive alternative to traditional savings for those seeking both capital security and the potential for market-linked returns, particularly now that more of their investment is covered by the FSCS.

This is great news for investors who may want to shelter more of their investments under the FSCS umbrella, as well as for those who may be looking to ‘bank’ recent profits ahead of an uncertain outlook for equity markets.

A Structured Deposit combines some of the features of a fixed term deposit account with those of an investment product. In contrast to a fixed term deposit, the rate of return is dependent on the performance of one or more financial assets or market indices, such as the FTSE 100.  Structured Deposits are designed to return investors’ original capital as a minimum at maturity provided funds are held for the full fixed term.

For further information on Structured Deposits and details of the latest available plans, take a look at our website Structured Deposit Plans – Best Advice Wealth Management