Deposit safety restrict for savers if their financial institution or constructing society fails could possibly be raised to £110,000

The deposit protection limit for savers if their bank or building society fails could be raised to £110,000.

The Prudential Regulation Authority (PRA), which supervises financial institutions, has proposed increasing the limit of the Financial Services Compensation Scheme (FSCS) from £85,000.

If firms go bust and cannot pay claims, the scheme can step in to fund compensation. If taken forward, the limit would apply to firms that fail from December 1.

Protection: The Prudential Regulation Authority, has proposed increasing the limit of the Financial Services Compensation Scheme from £85,000

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