The government's decision to extend compensation for savers has been welcomed by the Building Societies Association (BSA).
As of tomorrow (October 7th), the government will guarantee £50,000 worth of savings – an increase of £15,000, according to the Financial Services Authority (FSA).
The FSA said that people with joint accounts will receive up to £100,000 worth of savings cover.
According to the BSA, the move will ensure 97 per cent of building societies' customers with savings accounts are covered by the extended scheme.
"It is good that this new limit is to be implemented so quickly," the BSA said.
Adding: "The financial services market is changing rapidly and there is no room for uncertainty or lack of clarity for consumers."
The changes to the compensation package come as the government attempts to get a banking bill through parliament.
According to the FSA, the increased compensation will provide savers with confidence and long-term security.
