Savings are being kept at home by many people who don't believing using a savings account will generate a healthy return.
The FSA is urging savers to put their money in bank accounts to take advantage of the new higher protection limit.
Britons are storing over £7 billion of savings at home instead of in bank accounts, new research has revealed.
The average amount kept at home is just over £280, according to a report unveiled by the Financial Services Compensation Scheme (FSCS). However, 1% of the respondents in the report said they stored over £10,000 at home and just under 5% of the 1000 participants said they kept a grand.
Two fifths of respondents said they kept a much lower figure of just £20 at their house.