The deposit compensation limit protected by the Finance Services Compensation Scheme (FSCS) has been increased to £85,000.
Deposits which are made by both individuals and small businesses to authorised firms are protected by the FSCS.
As of 30 January 2017, the deposit compensation limit is £85,000, up from the previous limit of £75,000.
The drop in sterling following the Brexit vote had influenced the threshold change.
This also means that the deposits for joint accounts are limited to £170,000.
The protection covers money in current accounts, savings accounts and cash ISAs.
Firms may still receive a share of their savings above the limit following any distribution of assets as part of a bank failure. This would be a matter for an insolvency practitioner to decide and any money recovered will depend on the circumstances of the specific failure.
Contact us today to discuss how these changes may affect you and your business.