It Sounds Like Good News — But Let’s Do the Maths
The headlines are glowing: “FSCS protection is going up!”. If approved, the Financial Services Compensation Scheme plans to raise the limit from £85,000 to £110,000 starting December 2025. A tidy 29.4% boost.
On paper, it looks like the government is stepping up to protect more of your savings. But here’s the uncomfortable truth: that “increase” simply brings the limit back in line with inflation.
According to the Bank of England’s own calculator, £85,000 in 2017 is worth £111,533.09 today. That’s a 31% increase in the cost of living — meaning the new cap doesn’t even quite restore the real value you had eight years ago. The scheme offers no extra protection — it gives you slightly less buying power than before.
Check the Bank of England Inflation Calculator
Inflation Takes No Prisoners, Not Even Your Safety Net
FSCS protection wasn’t built to grow your wealth — it exists to avoid catastrophe if a bank goes under. But when the limit stays frozen while prices rise, even “protected” savings lose purchasing power.
Regulators have waited years to suggest an adjustment. This move doesn’t protect your savings — it attempts to recover ground already lost.
If Your Savings Aren’t Growing, They’re Shrinking
Zoom out for a second.
The FSCS limit might rise, but the pound’s purchasing power keeps falling. A 29.4% boost sounds good — until you realise inflation outpaces it. So ask yourself: is your money actually protected if its value continues to shrink?
And remember —should the proposal go ahead, the new limit would only kick in on 1 December 2025. Until then, nothing changes
The Illusion of “More”
Regulators may frame this limit hike as progress, but it signals deeper instability in the system. After all, if the system were stable, would protection suddenly need boosting by nearly a third?
Regulators don’t raise safety nets without reason. Regulators proposed the cap increase after collapses like Silicon Valley Bank UK, which was sold for £1 to avoid a full-scale crisis.
That’s not reassurance. That’s an admission.
FSCS Protection Is Reactive. Inflation Is Constant.
The FSCS doesn’t stop banks from failing, it doesn’t freeze inflation. It reacts — after the damage is done.
If you’re holding savings over £85,000 (or even £110,000 in future), a portion of your money is exposed. And if you’ve ever dealt with claims systems, you’ll know they aren’t instant. There’s no “tap to reclaim” button.
Every day, inflation chips away at the real value of the pounds you’ve worked so hard to earn.
One Banking Licence, One Cap — The Trap
Here’s something most people miss: the FSCS limit applies per banking licence — not per brand.
So if you keep £60,000 in Halifax and £60,000 in Bank of Scotland, you’re not covered up to £120,000. You’re still limited to the FSCS cap, because Halifax and Bank of Scotland share the same banking licence.
That’s a costly misunderstanding. It proves again how the current system confuses savers, fragments their protection, and fails to prioritise their needs.
Real Value Needs Real Assets
While the FSCS is still talking about change, gold has already delivered it.
In the past 12 months, gold has risen by over 30%, and over 60% in the past three years. That’s not speculation — it’s performance. While cash savings wither under inflation, gold has historically held or increased real value.
Platforms like TallyMoney let you convert your pounds into digital access to physical gold, securely held in insured vaults. Every tally equals 1 milligram of gold you own outright — not a paper promise, and not a derivative. The gold is reconciled daily and independently audited each quarter for full transparency
And here’s the critical difference:
- TallyMoney insures your gold fully, stores it physically, and allocates it directly to your account.
- Even if TallyMoney were to cease operations, your gold remains yours and would be sold, with 99% of the proceeds returned to you within 14 days.
Spend It Like Pounds. Feel Safer Than Ever.
TallyMoney is built for modern living. Your gold isn’t locked away or unusable — you can:
- Spend it anywhere with a TallyMoney debit Mastercard
- Transfer it instantly to GBP
- Withdraw it via ATMs
- Use it globally with no FX fees
- Check your balance in gold and GBP at any time
It’s not crypto, it’s not speculative. It’s real, spendable gold — accessible like money but far more stable.
Unlike FSCS, which responds after a crisis, TallyMoney gives you resilience before anything goes wrong.
FSCS Protection vs. Financial Independence: You Choose
Let’s recap:
- Regulators may raise the FSCS cap by £25K, but they haven’t finalised the decision — it’s still in consultation.
- The pound has already lost more than that in real-world value.
- You’re being offered “more” — but it buys the same or less.
Meanwhile, gold has outpaced inflation — and TallyMoney lets you own it, use it, and ditch the waiting game entirely.
This isn’t just about interest rates or compensation schemes. It’s about control. It’s about preserving value — not just hoping someone else will do it for you. The value of tally® is tied to the global gold price, which can fluctuate. As each tally represents 1 milligram of physical gold, your balance may move up or down in line with the gold market.
Take Control of Your Savings Before the System Pretends It Has
You’ve worked hard. You’ve saved smart. Now it’s time to protect it properly.
With TallyMoney, you hold gold — not promises. You’re not waiting for rules to change, or policies to pass. You’re already ahead.
Open your TallyMoney account now and give your savings the asset-based protection they deserve. No delays. No inflation erosion. Just real gold — yours, instantly usable, and ready when you need it.
