From 1 December 2025, the Financial Services Compensation Scheme (FSCS) has raised its deposit protection limit from £85,000 to £120,000 per organisation or individual. This is good news for charities, social enterprises, and organisations in the sustainability sector, ensuring greater security for your funds if a bank or building society fails.
Key highlights for your organisation
- New limit: £120,000 per person, per authorised institution
- Joint accounts: Protection doubles to £240,000
- Temporary high balances: Up to £1.4 million covered for six months (e.g., after receiving a grant or selling property)
- One limit per institution: Coverage applies across all brands under the same banking licence. For example, Lloyds, Halifax, and Bank of Scotland count as one institution
Shared banking licences – examples
When planning your banking arrangements, remember that some well-known brands share a single licence. Here are a few major groups:
- Lloyds Banking Group: Lloyds Bank, Halifax, Bank of Scotland
- HSBC Group: HSBC, First Direct, M\&S Bank
- Barclays Group: Barclays (including savings brands)
- NatWest Group: NatWest, Royal Bank of Scotland, Ulster Bank
- Santander UK: All Santander branded accounts
If your organisation holds more than £120,000 across brands within the same group, consider spreading funds across different institutions to stay fully protected. Note that we are not recommending any particular bank or group of banks, these are just examples!
Why it matters for charities and social enterprises
Many organisations hold significant reserves for projects or grants. This change means you can keep more funds protected without splitting across multiple banks—but be aware of the “one institution” rule to avoid exceeding the limit unintentionally.
Action steps
- Review your current banking arrangements
- Check which brands share a banking licence
- Consider spreading funds across different institutions if your balances exceed £120,000