Kevin Mountford, head of savings at moneysupermarket.com comments

Edited by the Insidemoneytalk editorial team Oct 2, 2008

on the rumoured increase of the FSCS compensation limit to ?50k

Kevin Mountford, head of savings at moneysupermarket.com, commented: "Tonight's announcement by Gordon Brown that the UK compensation limit for savings will increase from ?35,000 to ?50,000 is a case of better late than never.

The Irish Government's initiative to stand behind 100 per cent of savings deposited with Irish banks is likely to have spurred the UK Government into action.

If it hadn't acted now we'd have seen a flood of UK savings into Irish accounts - with banks such as Allied Irish and Anglo Irish already offering attractive rates to UK savers.

"The proposed new ?50,000 UK Financial services compensation Scheme limit should be enough to stem this flow, especially as doubts remain as to whether the Irish Government could actually fund its guarantee if it were required to.".