Savers are to be offered greater protection against bank failures, amid concerns that the coronavirus pandemic has increased the likelihood of financial firms collapsing.
The Financial Services Compensation Scheme is the industry lifeboat fund which compensates customers who have lost money to failed financial institutions. Deposits with British banks, building societies and credit unions are normally protected up to £85,000 per person.
However, there is additional protection for customers who have temporarily high balances of up to £1m. This may be because the proceeds of a house sale have been deposited in their account or they have received a large