"Britain should scrap the savings safety net of £75,000 to strengthen the British economy, a think-tank has argued in a report.
Andreas Wesemann – the author of the Centre for Policy Studies study - argues the Government must stop insuring bank deposits, a practice which he says has 'only resulted in an increase in the probability and severity of banking crises.'
The report says that without the availability of a Government guarantee for their savings, consumers would 'be required to become more risk-aware in their choice of bank.'
At present, if a bank or building society that is part of the Financial Services Compensation Scheme goes bust, savers are 'guaranteed' to obtain the first £75,000 back."
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