Deposit protection falls to £75,000
In line with EU requirements, every five years the PRA must review the protection given to deposit fund holders to ensure that there is a 100,000 Euro cap. The review means that from the end of December the current protection level of £80,000 will reduce to £75,000. UKIP will no doubt use this to demonstrate that being in the EU is not a good idea … and in this case, they are probably right.
Temporary deposit protection increases to £1m
While the PRA 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.