Deposit protection level at FSCS raised 41 per cent

An increase in the Deposit Protection Limit to £120,000 from 1 December is a 41 per cent rise on the current £85,000 level - and £10,000 higher than the PRA proposed in March this year.

By Neasa MacErlean

The sum was increased "in light of consultation feedback and to reflect the latest inflation data", says the Bank of England in its announcement. With concerns rising about the stability of global markets, the substantial increase would protect banks from unexpected withdrawal surges from depositors.