From 1 December 2025, the Financial Services Compensation Scheme (FSCS) will raise the protection limit for temporary high balances from £1 million to £1.4 million. This is a significant change for anyone who holds large sums in a UK bank or building society for a short period.
What is Temporary High Balance?
Temporary High Balance protection is a safeguard that applies when a large sum of money is held in a bank account for a short period of time. This often happens after a major life event such as selling a property, receiving an inheritance, or a redundancy payment. Under the Financial Services Compensation Scheme (FSCS), eligible balances above the standard £85,000 limit can be protected for a limited time, provided certain criteria are met. The FSCS protects these balances for six months, giving you time to manage the funds safely.
In short, it’s designed to protect large, short-term cash balances following major life changes, offering reassurance while you decide how best to use the funds.
Why This Matters
Executry work often involves transferring substantial sums after a death. This increase means estates are better protected during administration. While the general deposit protection limit will also rise to £120,000 per person, the jump in temporary high balance cover is the real headline for clients dealing with substantial estates.
How Burnett & Reid Can Help
Administering an estate can be complex, especially when large sums are involved. Our Private Client team handles everything from straightforward estates to those with multiple properties, investments, and international elements. We ensure funds are managed securely and efficiently throughout the process.
If you need advice on executry services, contact Burnett & Reid today. We combine expertise with clear communication to make a difficult time easier.