Source: Sharecast
The new deposit protection limit will rise from the current limit of £85,000 on December 1. Original proposals were for an increase to £110,000 of savings in bank, building society or credit union accounts but the Bank of England’s regulatory arm, the Prudential Regulation Authority, said the amount had been lifted “in light of consultation feedback and to reflect the latest inflation data”.
Customers will typically get their money back within seven days of a lender going out of business.
Announcing the new rules, the Bank of England’s regulatory arm, the Prudential Regulation Authority, said the proposed new limit of £110,000 had been increased “in light of consultation feedback and to reflect the latest inflation data”. UK CPI at 3.8% is nearly double the BoE's 2% target.
Customers will typically get their money back from the Financial Services Compensation Scheme (FSCS) within seven days of a lender going out of business.
Protection for “temporary high balances” is also being increased to £1.4m from £1m. This covers events such as proceeds from a house sale or receipt of an inheritance. The FSCS protects temporary high balances for up to six months.
Reporting by Frank Prenesti for Sharecast.com
