The Financial Services Authority (FSA) has raised the limit to the amount of deposits that are guaranteed should a bank go bust to £50,000.
The new limit will come into effect on Tuesday 7 October.
Previously, the first £35,000 of savers' deposits had been protected.
The FSA will now consult on whether the limit should be raised even higher.
Ireland introduced an unlimited guarantee covering bank deposits earlier in the week.
The limit is for each customer so joint accounts will be guaranteed up to £100,000.
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It is also to consider whether accounts with different banks that are owned by the same parent company should be covered.
At the moment, customers are only covered for one account under each banking licence so if you have two accounts with banks that are owned by the same parent company you will only have a total of £50,000 guaranteed.
(BBC)
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