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Financial Services Compensation Scheme

Journalist: Emma Lunn, Freelance

ended 15. April 2025

Looking for comments for Saga - so aimed at over 50s - about the FSCS.

Is it a good idea to raise the FSCS limit from £85k to £110k as per the current consultation - and why?

Why over 50s in particular need to be aware of what the FSCS limit means (i,.e. they tend to have higher savings balances)?

Any special rules this age group need to be aware of? (i.e. double cover for joint acccounts, £1m limit for certain life events.

2 responses from the Newspage community

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Colin Low
Managing Director at Kingsfleet
This will provide great reassurance to savers. The present level has been in place since 2017 It had been rerdcued to £75,000 because of the strength of Sterling v Euro (when the UK was till in the EU).
Now the UK regulators can make their own decisions and to give added reassurance to retail savers and investors is a very wise proposal, especially at a time when there is immense uncertainty in global markets.
At a time when the UK's financial credibility is under question, shoring up the seecurity of deposits will help reassure those who look at the UK as a safe place to invest.
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Luke James
Tax Director at Gravitate Accounting
The raising of the FSCS limit makes a lot of sense. The value of this limit has been eroded by inflation and rising interest rates have encouraged more long-term saving. Increasing the cap to £110k reflects these changes.
Over 50s are likely to have large and complex balances from pensions, inheritance, or downsizing property. Without this increase, they must split funds across banks to stay protected, meaning unwelcome admin and complexity.
One person is covered up to £85,000, but joint accounts get £170,000. After the increase, this would be £220,000 for a couple.
FSCS also protects business bank accounts, so this will also significantly benefit business owners who will spread money across various accounts to benefit from higher interest while keeping funds protected.
It is important to note that this applies per bank, not per brand. HSBC and First Direct are different brands, but share an FSCS license, meaning you don’t get separate protection like you would for HSBC and NatWest.