UK bank customers will benefit from an increase to the maximum amount they would
be reimbursed for if their bank were to fail from 1 December, the Prudential
Regulation Authority (PRA) has confirmed.
From December, the deposit protection limit, which applies to the Financial
Services Compensation Scheme, will protect up to £120,000 of a depositor's money
should their bank, building society or credit union fail.
This increases the limit from the current £85,000 which was set in 2017. It is
also more than the previous PRA proposal of £110,000, which the regulator has
changed due to consultation feedback and the latest inflation data.
This increase in the deposit protection limit is the latest in a series of
regulatory thresholds to be updated by the PRA.
Sam Woods, Deputy Governor for Prudential Regulation at the Bank of England and
CEO of the PRA said:
'This change will help maintain the public's confidence in the safety of
their money. It means that depositors will be protected up to £120,000
should their bank, building society or credit union fail. Public confidence
supports the strength of our financial system.'
Internet link: Bank of England