The FSA's announcement today to improve the protection for deposits available under the Financial Services Compensation Scheme has been welcomed by the Consumer Panel.

John Howard, Chairman of the Financial Services Consumer Panel said:

"Guaranteeing 100% of the first £35,000 held on deposit is a sensible first step in giving consumers more confidence in the safety of their savings. We are pleased that the Treasury and the FSA are also considering changing the upper limit. We believe that the present £35,000 guarantee is too low but recognise that any increase in the guarantee will need to be funded, and are conscious that consumers are likely to bear at least part of that cost. So a balance needs to be struck between a sensible upper limit and the total cost of the scheme. We look forward to contributing fully to further consultations with the Government and the FSA."

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