FSCS vs Global Deposit Insurance: Why the UK Wins
FSCS deposit protection went from £85k to £120k on 1 December 2025 and most UK savers still don't know. The £1.4m life-event window FDIC and EU DGS don't have is the bigger story.
Deposit insurance caps compared (GBP equivalent)
UK moved from mid-table to third place after the December 2025 uplift from £85k.
FSCS vs FDIC at a glance
| Dimension | UK FSCS | US FDIC |
|---|---|---|
| Cash cap | £120,000 per licence | $250,000 per ownership category |
| Investments covered | Yes, £85,000 cap | Separate scheme (SIPC) |
| Pensions and insurance | Yes, 100% no cap | Separate state schemes |
| Life-event window | £1.4m for 6 months | None |
| Payout target | 7 days | 7 days |
FSCS pulls ahead on breadth, not headline cap.
Key takeaways
The UK's FSCS deposit cap rose from £85,000 to £120,000 on 1 December 2025, lifting it past the EU and Switzerland and putting it third behind the US ($250,000) and Australia (AUD $250,000)
FSCS protects more product types than any major scheme - cash, investments, pensions, insurance, mortgage advice - most schemes only cover bank deposits
The £1.4 million Temporary High Balance rule (house sale, inheritance, redundancy) is unique to FSCS with no equivalent in any other developed economy
FSCS is industry-funded with no taxpayer dependency, has a 7-day payout target for cash, and has paid out reliably on every major UK failure since 2001