1st April 2015
People who have large sums temporarily deposited in their bank accounts following property sales or for other reasons, will soon be protected if their bank goes bust.
The Bank of England has revealed that the Financial Services Compensation Scheme (FSCS) is to be extended from July 3.
Currently the scheme protects up to £85,000 per person per institution, but from July, anybody who has a sum of up to £1m for up to six months will also be entitled for compensation if their bank fails.
Common reasons why people might have a temporarily high bank balance include divorce or insurance payouts, wedding savings or wedding presents, inheritance and redundancy or injury compensation.