Large amount in one bank account

ALADINSANE

I am now collecting all my savings to buy a property
So far I have gathered £196000 and it is sat in a cooperative bank account
I have 3 months to go before the house is ready
How safe is my money and how safe is the cooperative
Bank
Any advice would be appreciated

Alice_Holt

FSCS limit is £85k.
But there is a £1 million protection limit for temporary high balances held with your bank,
"Temporary high balances are the result of specified major life events that lead to a large amount of money being held in a person’s account for up to six months."

But I'd still be inclined to move it to an NSI instant access account, if just for peace of mind.

newatc

I agree with Alice, why take the risk (however small) of a failure meaning you can't go ahead (even if money is safe, the funds may not be available if there is a problem with the bank).

Newly_retired

Particularly the co-op bank.

Jo_Blogs

Alice_Holt wrote: »

FSCS limit is £85k.
But there is a £1 million protection limit for temporary high balances held with your bank,
"Temporary high balances are the result of specified major life events that lead to a large amount of money being held in a person’s account for up to six months."

But I'd still be inclined to move it to an NSI instant access account, if just for peace of mind.

I agree with Alice........NS&I are government backed, so your savings are 100% safe

Interest rate Rate 1.00% gross/AER until 30 April 2017 then 0.75% gross/AER from 1 May 2017

Here is the link:

https://www.nsandi.com/income-bonds

ColdIron

Temporary high balances are the result of specified major life events

I doubt that consolidating all your cash constitutes a specified major life event

dales1

The £1m temporary protection is limited to eg property sales money, NOT for savings towards property buying.
https://www.fscs.org.uk/what-we-cover/questions-and-answers/qas-about-temporary-high-balances/
You should certainly move from Coop, and NSI is an easy and 100% safe option.

Dales

[Deleted User]

ALADINSANE wrote: »

I am now collecting all my savings to buy a property
So far I have gathered £196000 and it is sat in a cooperative bank account
I have 3 months to go before the house is ready
How safe is my money and how safe is the cooperative
Bank
Any advice would be appreciated

In today's climate of rubbish interest rates, for a short term storage of the amount of cash you've got, forget interest rate and ensure::
1 No more cash with any institution above the FSCS limit (£85,000)
2 The ability to move large amounts of cash out of your account quickly when you buy the house. This means checking that you can move out £85,000 by a single Faster Payment transaction. Many institutions restrict you to far less than that per transaction or per day.

YorkshireBoy

ColdIron wrote: »

I doubt that consolidating all your cash constitutes a specified major life event

It's certainly not on the list on the FSCS website...from where Alice quoted?

YorkshireBoy

Deleted_User wrote: »

This means checking that you can move out £85,000 by a single Faster Payment transaction. Many institutions restrict you to far less than that per transaction or per day.

I'm all for moneysaving, but I think for £196K+ I'd be paying for a CHAPS transfer.

colsten

Please reduce your COOP balance to below £85,000 today. They can go tits up any time now. Ideally, get all your money out.