Deposit protection increases to £1m
While the Prudential Regulatory Authority is reducing the protection to £75,000 they are also launching a new ‘temporary’ protection level of £1m, which will apply for a maximum of six months.
This is to protect those people who temporarily have a large bank balance, for example when moving house. There are rules in place to prevent the money from being moved from account to account to gain the protection. In this way it really is just a temporary protection.