Increasing savings compensation will help provide confidence

Director at Fairinvestment.co.uk, James Caldwell comments on Gordon Brown's announcement that the savings compensation limit will be raised from £35,000 to £50,000.

Mr Caldwell comments: "There has been a flood of savings funds into Irish banks that offer higher protection. Increasing the limit to £50k will help provide confidence in the UK, but we are in a new financial climate where people are no longer just thinking about maximising interest on their money. People are looking for security so we can expect the trend of people opening multiple savings accounts with different providers to increase going forward."