keeping savings safe.

steve.othen

As savers can only put £75,000 into each financial institution to insure its protected from the banks going bankrupt, does this mean that if a person has a large sum to invest, say for example £500,000 , that they would have to open up seven separate accounts with seven different financial institutions ?
Also what do people who have millions of pounds do ? i don't think there are hundreds of millions of financial institutions/ banks in the uk, are there ? do people with millions literally have to open up
thousands of separate bank accounts ? or is there somewhere where you can keep your money all in one place & its safe ?

HappyMJ

People with a net worth of millions of pounds don't tend to keep most of their net worth in cash.

They might invest most of their cash in stocks.

Even if you open let's say 5 accounts and put £200,000 in each the risk of all 5 banks failing at once is minimal.

ps2659

steve.othen wrote: »

As savers can only put £75 into each financial institution to insure its protected from the banks going bankrupt, does this mean that if a person has a large sum to invest, say for example £500,000 , that they would have to open up seven separate accounts with seven different financial institutions ?
Also what do people who have millions of pounds do ? i don't think there are hundreds of millions of financial institutions/ banks in the uk, are there ? do people with millions literally have to open up
thousands of separate bank accounts ? or is there somewhere where you can keep your money all in one place & its safe ?

Should read £75000.00 not £75

eskbanker

steve.othen wrote: »

or is there somewhere where you can keep your money all in one place & its safe ?

Yes, National Savings is Treasury-backed and so offers guarantees beyond the FSCS limits, so can be used for seven-figure sums if the holder has a desire to keep so much in cash deposit form.