THE BANK OF ENGLAND ANNOUNCE IMPROVED PROTECTION FOR DEPOSITORS AND CERTAIN INSURANCE PRODUCTS 07.10.14

The Bank of England announced on Monday that it is introducing rules to increase protection on bank balances to £1m where the balance is temporarily high for such occasions as house sales to save customers spreading the proceeds among banks at £85,000 per bank in order to ensure compensation.

Likewise the protection on certain insurance products will increase from 90% to 100%. For instance death, incapacity, annuities and professional indemnity. In addition the FSCS, Financial Services Compensation Scheme will have to pay up within 7 rather than the current 20 days. So that the chances of a run on a bank like what happened with Northern Rock is less likely.