How safe is an online bank like Virgin Money?

needmorehelp

I know that no one has a crystal ball, but just wondering how safe is an online bank like Virgin Money, and would you feel safe putting in more money in an account with it, that is greater than the 85K compensation scheme?


Also if there was a no deal brexit, could this possibly lead to any financial meltdown in the banking sector, so that people could loose some deposits?


Thinking of selling house and tying the money up for a while while we rent.


Thanks for any clarrification.

HappyHarry

needmorehelp wrote: »

I know that no one has a crystal ball, but just wondering how safe is an online bank like Virgin Money, and would you feel safe putting in more money in an account with it, that is greater than the 85K compensation scheme?


Also if there was a no deal brexit, could this possibly lead to any financial meltdown in the banking sector, so that people could loose some deposits?


Thinking of selling house and tying the money up for a while while we rent.

Thanks for any clarrification.

VM isn't only online. They've over 70 branches across the country, and are merging with CYBG, who have many more branches.

There's no real reason for Brexit to affect the retail banking sector.

Remember you each have an £85k limit, so that's £170k between you. If you're nervous about the £85k limit, just diversify, or use NS&I products, which are government backed rather than FSCS backed, and so have much higher limits.

Sapphire

needmorehelp wrote: »

I know that no one has a crystal ball, but just wondering how safe is an online bank like Virgin Money, and would you feel safe putting in more money in an account with it, that is greater than the 85K compensation scheme?

For myself, I wouldn't put more than £85,000 in any savings account, except perhaps an NS&I one. It is simply too risky; there have been periodic financial crashes throughout the existence of relatively modern banking, and they can be caused by world events and any number of other reasons. They can catch many people unawares.

It seems to me that it's when people rest on their laurels and appear supremely confident that there will never be another financial crash (etc.), and that their money is thus safe, that financial downturns occur.

AndyPK

In any case, I think there is a new rule which means you are covered for over £85K in circumstances of when you have sold a house. (for ~6 months)


research it

Owain_Moneysaver

If you are intending to purchase another house, a risk may be that the money isn't available sufficiently quickly if you need to claim under FSCS, particularly if you have to make multiple claims.

Temporary FSCS high balance protection is covered up to £1m for 6 months following a house sale.

Xenon

I am topping up my £55000 in my Virgin Easy access account to £85000

I will sleep safe and sound as well - no need to worry

AnotherJoe

What difference does it make that it's an online bank?

colsten

AnotherJoe wrote: »

What difference does it make that it's an online bank?

Perhaps it goes like that: When your online bank goes tits up, you can only stare at your PC/tablet/phone. When your bank with branches goes tits up, you can stare at the locked doors of their rented premises.:p