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