Compensation change would reduce stresses

Commenting on the FSA's proposal for temporarily increased FSCS cover, Kevin Mountford, head of banking at independent comparison site moneysupermarket.com, said: "Any increase in the compensation limit can only be welcome for savers and providers alike. With a quantum leap in the limit, it will reduce the anxieties that many people faced over the past year when selling a home or a business and looking to safely invest the proceeds while still getting a decent return.

"The six-month time-restraint would give people the chance to draw breath, look at the £50,000 compensation limit that would come back into being, and plan accordingly.

"People need enough breathing space to make sound financial decisions - and don't want the stress of making snap judgments with large sums of money."