Kingdom Bank welcomes PRA plan to raise FSCS limit

Kingdom Bank has welcomed the Prudential Regulation Authority’s (PRA) proposal to increase the Financial Services Compensation Scheme (FSCS) standard deposit protection limit from £85,000 to £110,000 per eligible depositor, per authorised firm. Subject to consultation feedback, regulatory approvals and final rulemaking, the change is proposed to apply to firm failures occurring on or after 1 December 2025.

Sam Woods, Deputy Governor for Prudential Regulation & CEO, PRA comments:

‘Confidence in our financial system is an essential foundation for economic growth… raising the amount that people can keep in their account which is covered by the deposit guarantee scheme to £110,000 per person means all that money is safe even if the firm fails.’

Martyn Beauchamp, CEO, FSCS, added:

‘Depositor protection is what FSCS is best known for… Consumers tell us that the existence of FSCS protection is a key driver of their trust in financial services.’

Kingdom Bank response

Matt Slack, Chief Financial Officer for Kingdom Bank, said:

‘We wholeheartedly support the PRA’s proposal. Our customers choose Kingdom Bank because they want their savings to be safe and to drive gospel-hearted mission. A higher FSCS limit gives individuals, churches, Christian charities and businesses greater confidence to entrust larger balances with us, knowing more of their money is protected.’

He goes on to add that stronger protection also strengthens Kingdom Bank’s capacity to deploy more funding into specialist mortgage lending for churches, ministries and Christian workers:

‘In 2020 we lent just over £5 million. In 2025 we expect to lend £31 million in mortgages that help churches secure permanent homes for worship, community outreach and evangelism, or help Christian workers to secure housing. That growth has only been possible because faithful Christians placed their savings with Kingdom Bank. A higher protection limit can help us go further, faster.’

Why this matters for churches

Many churches across the UK still rent space week to week: community halls, schools, leisure centres, even commercial venues. Rents have risen sharply in many areas, and availability can be fragile. From time to time, congregations face last-minute cancellations or longer-term refusals of space when venue owners become uncomfortable with a church’s teaching or Sunday activities. Owning suitable premises can transform stability, local visibility and ministry impact.

Pod Bhogal, Chief Market Officer for Kingdom Bank, said:

‘Churches are increasingly turning to Kingdom Bank for mortgage lending so they can buy their own buildings. They’re facing rising rental costs and, in some cases, being refused space because of what they teach on a Sunday morning. That’s why we urgently need Christians to save with us. Your deposits enable us to meet the growing demand for church lending.’

What happens next

The PRA’s consultation on FSCS protection limits ended on 30 June 2025. The regulator has indicated it expects to publish a policy statement setting out final rules, subject to HM Treasury approval, in November 2025. If confirmed, the new £110,000 limit would take effect after 1 December 2025.

Quick refresher: how FSCS protection works today

• The FSCS protects eligible deposits per depositor, per authorised firm up to the current standard limit of £85,000 (or £170,000 for joint accounts).
• Additional, time-limited protection (Temporary High Balances) can apply, typically up to £1 million for six months, after certain life events such as a residential property transaction, inheritance, or insurance payout. The PRA is also proposing to increase this limit to £1.4 million.
• Depositors who hold more than the standard limit can spread funds across separately authorised institutions to maximise protection.
• Any increase to the FSCS limits must be confirmed by regulators and, where required, approved by HM Treasury before becoming effective.

Next steps for savers and churches

1. Review your current savings with us. If you are holding more than the present £85,000 limit (or £170,000 joint), consider how the proposed change might affect you.
2. Planning a building project? Talk to our Church and Charity lending team early so we can help you structure fundraising and deposit holdings in advance of completion.
3. Open or top up a Kingdom Bank savings account. Could this raised FSCS limit enable you to place more savings with us? Your deposits create more bases for gospel ministry across the UK.

About Kingdom Bank

Kingdom Bank is a UK Christian bank dedicated to helping churches grow. We provide savings accounts, mortgages to churches, Christian charities and ministry workers, and specialist insurance broking and property advisory services, with the aim of releasing gospel-centred ministry across the country. We are authorised by the Prudential Regulation Authority, regulated by the Financial Conduct Authority and the Prudential Regulation Authority, and are a member of the Financial Services Compensation Scheme.