Bank to ring fence balances up to £1m

Savers will  receive more protection under the Central Bank’s proposals
Savers will receive more protection under the Central Bank’s proposals
PRESS ASSOCIATION

Bank customers who place large temporary sums in their accounts after selling their home or inheriting money will qualify for special protection under new Bank of England proposals.

Under the financial regulator’s plans, “temporary high balances” of as much as £1 million will qualify for the full deposit protection that applies only to the first £85,000 of money in a bank.

The recommendation was one of several proposals that form the bed-rock of the bank’s efforts to reorganise Britain’s lenders and insurers to prevent taxpayers coming to the rescue in another financial crisis.

Overhauling their systems will cost the industry as much as £4.8 billion, with customers likely to bear the brunt of the burden. Regulators say that the reforms are intended to stop a