Savers could get £500k protected from bank collapse under EU changes

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Some savers with up to £500,000 in their account will have their money fully protected by the government if their bank fails, under new European rules.

Currently only balances of up to £85,000 are guaranteed under deposit schemes. But European governments last week hammered out a deal to protect far higher sums if they can be shown to be short-term balances resulting from one-off events such a house sale or a divorce settlement, the Daily Mail reports. However, it could take two years before the change is implemented in Britain. Separately, Lloyds will this week unveil surging profits resulting from falls in the interest rates it pays to savers. Ian Gordon, an analyst at Investec, expects underlying profits to hit £1.4bn for th...

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