Following the Irish Republic's decision to offer unlimited guarantees to financial savers should their banks fail, it looks as if the UK will increase the level at which bank deposits are secured. Currently, the threshold is £35,000, but it is anticipated that savings of up to £50,000 will be attainable soon. The Irish guarantee is more limited than many people realise - extending for a period of two years, it merely covers deposits in six of its main savings institutions, which don't include the Ulster Bank.

No depositors have lost money from Northern Rock, Bradford & Bingley or any of the other crisis- afflicted banks of late, but those lucky enough to have substantial savings will certainly be reassured by the Government's proposal. It is currently estimated that only four per cent of UK bank accounts hold more than £35,000, and although the FSA is still consulting on the increase, cross-party support at Westminster is likely to see it incorporated into the forthcoming Banking Bill.