US EditionBank of England boosts deposit guarantee for savers to 120,000 pounds
- On Tuesday, the Bank of England announced the deposit guarantee will rise to 120,000, taking effect at the start of December and applying automatically, as confirmed by the PRA.
- After consultations, the PRA increased its proposal of £110,000, citing recent banking stresses and inflation as key factors, according to the Bank of England.
- The Financial Services Compensation Scheme has paid out over 26 billion to customers of failed firms, with temporary high-balance cover rising to 1.4m for six months, and joint-account protection doubling to 240,000.
- Officials said the change will bolster public confidence, with the PRA and FSCS chief executives endorsing it, and the Treasury approved the plan, citing minimal bank costs of less than 0.1.
- Compared with international limits, the Bank of England noted this is the biggest increase since 2017, narrowing the gap with the US $250,000 but remaining above the EU £100,000.
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UK savings protection limit to rise from Dec
UK bank customers will soon have more of their money protected if their bank were ever to fail. From December 1, 2025, the Financial Services Compensation Scheme (FSCS) limit will increase from £85,000 to £120,000, the Bank of England has confirmed in its official announcement. The change affects anyone with savings or current accounts in UK banks, building societies, or credit unions. Source
UK to Raise Cap on Bank Deposit Insurance to £120,000 Next Month
The Bank of England’s regulatory arm is lifting the amount that savers are guaranteed to get back in case of the failure of a financial institution, going further than plans it had floated earlier this year.
Bank of England boosts deposit guarantee for savers to 120,000 pounds
British savers will have up to 120,000 pounds ($158,000) of their money protected in the event of a bank failure, the Bank of England said on Tuesday after increasing the deposit guarantee limit by 40%.
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