The £10,000 rise is required to keep the UK in line with an EU-wide deposit protection limit of €100,000. “Resetting the FSCS limit back to £85,000 sets a more positive tone for savers,” he added. The Labour government moved to guarantee 100% of £35,000 of savings, replacing a tiered system of protection. The plan to increase the protection level back to £85,000 will benefit about 500,000 savers and will mean around 98% of customers are protected. Just under 1m savings accounts hold more than the top limit of £85,000.

Source: The Guardian November 21, 2016 12:40 UTC