Chase Bank UK has delivered welcome news to its customers, announcing a significant increase in deposit protection that will provide greater financial security for savers.
Enhanced Financial Protection
The online-only bank, owned by global financial giant JP Morgan, has confirmed that from December 1, 2025, the Financial Services Compensation Scheme (FSCS) protection limit will rise from £85,000 to £120,000. This substantial boost means customers will benefit from an additional £35,000 of guaranteed protection for their eligible deposits.
In a direct message to account holders, Chase Bank stated: "The Financial Services Compensation Scheme is increasing the protection limit on your eligible deposits from £85,000 to £120,000. This means their Deposit Guarantee Scheme will repay you up to £120,000 of your eligible deposits, in the unlikely event that something happens to Chase."
Automatic Update for Customers
The bank emphasised that customers don't need to take any action to benefit from this enhanced protection. The increased coverage will be automatically applied to all eligible deposits from the December implementation date.
This change reflects broader updates to the FSCS rules governing money protection across UK financial institutions. The scheme ensures that depositors receive compensation if their bank, building society or credit union fails.
Industry Support for Increased Protection
Senior financial regulators and consumer advocates have welcomed the protection increase. Sam Woods, deputy governor for prudential regulation at the Bank of England and chief executive of the Prudential Regulation Authority, commented: "This change will help maintain the public's confidence in the safety of their money. It means that depositors will be protected up to £120,000 should their bank fail. Public confidence supports the strength of our financial system."
Martyn Beauchamp, chief executive of the FSCS, added: "We welcome today's announcement confirming that the FSCS deposit protection limit will increase. This rise ensures that consumers can feel confident their money is safe, from the very first penny up to £120,000. At FSCS, we know that trust in financial services is vital for stability and growth."
Consumer advocacy group Which? also expressed support through its director of policy and advocacy, Rocio Concha: "Increasing the deposit protection limit is a sensible decision to support consumer confidence in the financial services industry. It is also a timely reminder that strong consumer protections needn't hamper economic growth aims."
This enhancement represents the most significant increase in deposit protection limits in recent years and comes at a time when financial security remains a priority for UK savers.
