Extra protection has been provided for current account holders, with temporarily large amounts of money, is part of a new compensation scheme that protects clients if their bank goes bust.
The scheme will look to protect hundreds of thousands of people and could include those saving for a property, large redundancy payments, insurance payouts or those receiving an inheritance.
The current scheme in place is the Bank of England’s Financial Services Compensation Scheme which only protects account holders first £85,000. The new scheme will cover people who have up to £1,000,000 in their account for up to a maximum period of six months.
A Bank of England spokesman has said: “Temporary high balances cover will be available for a six-month period from the date on which the money is transferred into their account, or that date on which the depositor becomes entitled to the amount, whichever is later.”
Source: The Daily Mail