Savings protection rise could help churches

Kingdom Bank - a UK Christian bank whose mission is to help churches grow - has welcomed a proposal to raise savings protection, saying it'll help churches.

The Financial Services Compensation Scheme (FSCS) exists to protect people's money if a financial firm fails. The Prudential Regulation Authority (PRA) has proposed an increase to the FSCS standard deposit protection limit, from £85,000 to £110,000 per eligible depositor, per authorised firm.

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

Kingdom Bank provides: 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.

Slack went on to say that stronger savings protection strengthens Kingdom Bank’s capacity to deploy more funding into specialist mortgage lending for churches, ministries and Christian workers.

"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... A higher protection limit can help us go further, faster," he added.

Many churches across the UK still rent space week to week. Rents have reportedly risen sharply in many areas, with availability being 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," Kingdom Bank writes. Pod Bhogal, Chief Market Officer, said that churches are increasingly turning to Kingdom Bank for mortgage lending in order to buy their own buildings.

"That's why we urgently need Christians to save with us. Your deposits enable us to meet the growing demand for church lending," Bhogal said.

Subject to consultation feedback, regulatory approvals and final rulemaking, the savings protection change is proposed to apply to firm failures occurring on or after 1 December 2025. The regulator has indicated that it expects to publish a policy statement setting out final rules, subject to HM Treasury approval, in November 2025.

Kingdom Bank has advised savers, who are currently holding more than the present £85,000 limit with the bank, to consider how the proposed change might affect them, and whether the raised FSCS limit could enable savers to top up an account. "Your deposits create more bases for gospel ministry across the UK," Kingdom Bank concludes.