Due to the impact that Covid-19 had on the residential property and investment markets, the Prudential Regulation Authority has decided to temporarily extend the Financial Services Compensation Scheme (FSCS) cover for large deposits.
The lifeboat fund will extend deposits from 6 months to 12 months from Thursday 6th August 2020. This will protect exceptional and short-lived deposits up to £1 million should the deposit taker fail.
The decision comes as some people have reduced access to banking services and large balance depositors will need a longer protection period due to Covid-19.
Monies will now be protected until February 2021, for money deposited into an account with an authorised UK bank, building society or credit union where the deposit coverage is due to end August 2020.
From February 2021 it will revert back to the original 6-month period.