New FSCS deposit protection limit

gt94sss2

ForumUser7 said:

Got an email from Virgin Money regarding the Nationwide Transfer which also references potential changes to the FSCS limit.

To note they are not referring to a potential increase in the FSCS limit but that following the legal transfer of Virgin Money to Nationwide, customers will have a single combined £85,000 limit. 

At the moment, Virgin Money and Nationwide have £85,000 per organisation.

ForumUser7

gt94sss2 said:

ForumUser7 said:

Got an email from Virgin Money regarding the Nationwide Transfer which also references potential changes to the FSCS limit.

To note they are not referring to a potential increase in the FSCS limit but that following the legal transfer of Virgin Money to Nationwide, customers will have a single combined £85,000 limit. 

At the moment, Virgin Money and Nationwide have £85,000 per organisation.

They refer to both:

How your FSCS protection is affected if you have deposits with Virgin Money and Nationwide

The Financial Services Compensation Scheme (FSCS) provides compensation to individuals with eligible deposits held in a UK bank or building society account in the event the bank or building society should fail. It protects up to £85,000 per person or up to £170,000 for joint accounts, across all the savings and current accounts customers hold in one regulated bank or building society (the limit is per person and not per account).

Before the transfer, separate protection is in place for Virgin Money and Nationwide deposits. So, for example, if you have £70,000 of deposits with Virgin Money, and £65,000 of deposits with Nationwide, all of your £135,000 is protected.

After the transfer, this protection will apply to your total combined deposits between Virgin Money and Nationwide. So, using the above example, £85,000 of your £135,000 of deposits will be protected, but £50,000 will not be protected.

If you’re going to be over the FSCS limit, we’ll be in touch in February 2026 to explain your options. You’ll be able to withdraw money to bring you within the FSCS limit, without giving us notice, and without any charges.

At the same time, we’ll also confirm if any change has been made to the FSCS limit by the Prudential Regulation Authority, as they may increase the limit later this year. More information about this will also be on our website.

For more information on FSCS, please see the 'FSCS Information Sheet' and 'Your questions answered’ at virginmoney.com/nationwide-transfer

*Quote feature not working

Scot_39

mta999 said:

The 110k limit seems to.be on from 1 Dec

https://www.thisismoney.co.uk/money/article-15273353/Boost-savers-Bank-England-raises-deposit-guarantee-limit-110-000.html?ico=mol_mobile_money-newtab&molReferrerUrl=https://www.dailymail.co.uk/money/index.html&_gl=1*1wpylyr*_gcl_au*MTUyNTQxMDYzNy4xNzU4MzcxODU3*_ga*MTU4ODk5NzMxMS4xNzU4MzcxODUw*_ga_C9F47K6NW6*czE3NjI2ODU0MzEkbzgwJGcwJHQxNzYyNjg1NDMyJGo1OSRsMCRoMTEyMzI0NDIz

The clue is in the "In a major boost for millions of savers, the Bank of England is expected to confirm that the deposit guarantee limit will increase from £85,000 to £110,000."

In other words still speculative - no definite increase yet - but it's going to have to be announced soon if really applies from Dec 1st.

A bit like various rumours re budget - some with more substance than others (e.g. OBR involved) - some repeats of ones that have been surfacing for years - under govts of both hues.

Futuristic

Confirmed now will be increased to £120,000 from 1st

https://www.bankofengland.co.uk/news/2025/november/pra-confirms-fscs-deposit-limit-to-be-increased-to-120000-from-1-december
 

nigelholl2

Futuristic said:

Confirmed now will be increased to £120,000 from 1st

https://www.bankofengland.co.uk/news/2025/november/pra-confirms-fscs-deposit-limit-to-be-increased-to-120000-from-1-december
 

At least that is some good news in these somewhat challenging times

friolento

Futuristic said:

Confirmed now will be increased to £120,000 from 1st

https://www.bankofengland.co.uk/news/2025/november/pra-confirms-fscs-deposit-limit-to-be-increased-to-120000-from-1-december
 

YAY £120k 🥳👍

And £1.4m temporary high balance 👍

BreakingGlass

Hopefully this will drive some small interest rate rises as savings institutions compete for the extra £35k. 

MeteredOut

Futuristic said:

Confirmed now will be increased to £120,000 from 1st

https://www.bankofengland.co.uk/news/2025/november/pra-confirms-fscs-deposit-limit-to-be-increased-to-120000-from-1-december
 

Woohoo, 12 years worth of annual allowances protected from December!

Ocelot

I'm glad, because I miscounted how many accounts I had with a particular challenger bank after I transferred an ISA a few weeks ago, making the balance over 100k!

eskbanker

BreakingGlass said:

Hopefully this will drive some small interest rate rises as savings institutions compete for the extra £35k. 

Seems unlikely - the number of people with savings of six figures currently split across multiple institutions will be pretty small to start with, and I'd expect the amount of incremental movement triggered by the limit increase to be insignificant relative to all the other factors driving interest rates....

Generosity may be affected in the other direction by the estimated increase of £67m in the levy used to fund the guarantee!