From 1 December 2025 the Financial Services Compensation Scheme (FSCS) deposit protection limit will rise from £85,000 to £120,000 on single accounts and from £170,000 to £240,000 on joint accounts.
This means that if anything were ever to happen to Castle Community Bank, or any other UK-authorised bank, building society or credit union, where you hold deposits or savings and it goes out of business, FSCS can compensate you up to the new limits per eligible person, per authorised firm.
You don’t need to take any action – the increased protection applies automatically.
Why will the deposit limit increase?
Under the Deposit Guarantee Scheme Regulations 2015, the Prudential Regulation Authority (PRA) is required to review the FSCS deposit compensation limit periodically and at least every five years.
The PRA consulted on a proposed increase to the deposit compensation limit in March 2025 and confirmed its final rules in November 2025.
Between 1 January 2017 and 30 November 2025, the deposit compensation limit was £85,000.
Things affecting compensation
Where you hold your money could affect how much compensation you’re entitled to. If you have money in multiple accounts with multiple banks that are part of the same banking group (and share a banking licence) FSCS have to treat them as one bank.
What is the ‘FSCS Protected’ badge – and why should you look out for it?
If you’re looking for a new deposit product (e.g. a current or savings account) from a UK-authorised bank, building society or credit union, it’s important to check that your money will be protected by FSCS. That way, FSCS can automatically pay you compensation if your provider fails and can’t pay back your money.
A quick and easy way of finding out is by looking for the ‘FSCS Protected’ badge.
What is the ‘FSCS Protected’ badge?
Disclosure requirements set by the Prudential Regulation Authority (PRA) require authorised banks, building societies, credit unions, Northern Ireland credit unions and certain overseas firms with branches in the UK to inform new and existing customers that FSCS protects their deposits.
FSCS also encourage protected deposit providers to display the ‘FSCS Protected’ badge, a symbol that indicates that eligible deposits held by a provider are protected by FSCS under the Deposit Guarantee Scheme. That means if your bank, building society or credit union fails, FSCS can automatically compensate you [from 1 December 2025] up to £120,000 per eligible person, per firm.
Find out more about how FSCS protect banks, building societies and credit unions.
To make the badge more recognisable and work better in digital settings, the badge was updated on 18 November 2025. There’s a six-month grace period for banks, building societies and credit unions to update the instances where the FSCS Protected badge is displayed. This means that you may see the old badge (below) displayed for a little while yet.
Do non-deposit firms display the ‘FSCS Protected’ badge?
Non-deposit firms (such as pensions, investments and insurance providers) are not currently permitted or required to display the ‘FSCS Protected’ badge.