Happy Monday,
Bringing you two major updates this week.
💷 FSCS protection increase from £85,000 to £120,000
📊 Experian credit score change from 999 to 1,250
SAVERS: YOUR PROTECTION JUST GOT STRONGER
From 1 December 2025, the amount covered by the FSCS (Financial Services Compensation Scheme) for eligible deposits in the UK-authorised banks, building societies and credit unions will rise from £85,000 to £120,000 per person, per firm.
A quick reminder: the FSCS is designed to protect your money if a financial provider goes bust. A safety net brought in after the financial crisis, and now being strengthened again.
WHY IT MATTERS?
- Protection is per firm, not per brand
For example, Halifax, Lloyds and Scottish Widows all sit under the Lloyds Banking Group, meaning your total protection across all three is £120,000 (not per bank).
- If you were above the old limit… you were carrying additional risk without realising it. The higher cap gives you a wider buffer
For many people, the change may not bare any impact but for those with larger deposits, this is a meaningful upgrade.
THINGS TO DO:
✔︎ | Check how much you hold in each bank/building society to ensure you're not above £120,000 in one institution.
✔︎ | Confirm that any accounts you hold are protected by FSCS (most major providers are)
✔︎ | If you're expecting a large, lump sum i.e. inheritance, home sale, insurance pay out… plan how & where to hold it
A quick bonus: protection for certain temporary high balances will also be increasing from £1million to £1.4million, but only for 6 months.
EXPERIAN CREDIT HEALTH: A SMARTER SCORECARD
Experian is one of the three major credit rating agencies in the UK (alongside TransUnion & Equifax).
Their range has officially changed from 0-999 as a scorecard, to 0-1250. Along with the new range, the score now takes into account more every day financial behaviours such as:
- Rental payments
- Mobile phone contract payments
- Mortgage overpayments
- Overdraft usage and patterns
Important to note, whilst your numerical score may change… your actual eligibility for credit (loans, cards, mortgages etc.) should not be adversely affected as a result of the update.
Still, if there was ever a time to tighten up those “harmless small habits” … this is it.
So, there's your update. Essentially these changes demonstrate stronger deposit protection and a more nuanced credit score in attempt to reflect where the UK financial system is heading… a more sophisticated assessment for borrowers.
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