UK bank and building society customer protection limit to rise to £120,000

Increase of more than 40% from current figure of 85,000 will give more cover if financial firm goes bust

The amount of a customer's money protected if a UK bank or building society goes bust will rise to 120,000 next month, providing a boost to the nation's savers.

The new deposit protection limit, a 41% rise from the current limit of 85,000, is higher than expected and takes effect on 1 December.