The Bank of England has raised the deposit protection limit for savers to 120,000.

On Tuesday, the Bank of England raised the deposit protection limit by 40%, stating that if a bank were to collapse, British depositors could be guaranteed up to 120,000 in protection. The current limit under the Financial Services Compensation Scheme is 85,000, set in 2017. The Prudential Regulation Authority of the Bank of England had previously recommended raising the limit to 110,000, but stated that choosing a higher limit was to reflect the ongoing high inflation rate. The CEO of the Prudential Regulation Authority, Woods, said: "This change will help maintain public confidence in the security of deposits." The new limit exceeds the EU's unified limit of 100,000, but is still lower than the limit in the United States. In the US, the guarantee amount for each depositor is at least $250,000. The PRA also announced on Tuesday that the protection limit for certain temporary high balance amounts will be raised from 1 million to 1.4 million.