From 1 December 2025, the government-backed protection that covers your savings has increased from £85,000 to £120,000. This is the first increase in eight years, with the previous limit in place since January 2017.
But whatever you’ve got saved, whether it’s £50 or £5,000, the important thing to know is that your money is protected from the very first penny.
Are credit unions FSCS protected?
Yes. Credit unions are FSCS protected in exactly the same way as high street banks and building societies. How to check your money is protected.
The Financial Services Compensation Scheme is a government-backed safety net that protects people’s money. It was set up by Parliament and is funded by the financial services industry, not by taxpayers.
If a bank, building society or credit union ever went out of business, the FSCS would step in and return your money. You wouldn’t need to do anything complicated to make a claim, and most people get their money back within seven days.
The FSCS has been protecting savers for over 20 years, and in that time it has helped tens of thousands of people get their money back when financial firms have failed.
Is my money as safe in a credit union as it is in a bank?
Yes, absolutely. This is one of the most common questions we hear, and we’re always happy to answer it.
Your savings with London Mutual Credit Union are protected in exactly the same way as they would be with any high street bank. The FSCS makes no distinction between banks, building societies and credit unions. The protection is identical.
So whether you save with us or with one of the big high street names, your money has the same government-backed guarantee behind it.
Do I need to do anything to be FSCS protected?
No. Your savings are automatically protected. There’s nothing you need to sign up for and no forms to fill in. The protection is there from the moment you open an account with us.
You might notice us displaying the FSCS Protected badge on our website and in our communications. This is simply a reminder that your money is covered.
What if I have a larger sum temporarily?
Sometimes people find themselves with more money than usual in their account, perhaps after selling a property, receiving an inheritance, or getting a payout from an insurance policy.
There’s extra protection for these situations. Temporary high balances are now protected up to £1.4 million for up to six months, giving you time to decide what to do with the money without worrying about whether it’s safe.
Why save with an FSCS protected credit union?
At London Mutual Credit Union, you get the same financial protection as a bank, but with something extra.
Credit unions are owned by their members, not shareholders. We’re not driven by profit targets or bonuses. Instead, we exist to help our members save, access affordable credit, and build financial confidence.
When you save with us, your money doesn’t just sit in an account. It’s used to provide affordable loans to other members in your community, helping people avoid high-cost lenders and build a stronger financial future.
And because we’re local, we understand the communities we serve. We’re here for NHS workers, Transport for London staff, armed forces personnel, and everyone living and working across Camden, Lambeth, Southwark and Westminster.
The best of both worlds
With full FSCS protection and a community-focused approach, saving with London Mutual Credit Union means your money is safe and doing good at the same time.
If you have any questions about how your savings are protected, we’re always happy to help.
