Briexit woes and more than 85k in one bank

needmorehelp

Hi,

I know that at the best of times its better not to have more than 85k in any one bank for compensation reasons, but in this era and with great uncertainty around Brexit and what could happen in the financial sector, is it even more prudent NOT to have more than 85k in any bank?

So if things start to look very hairy I probably think its advisable to be on the safe side and take the access out, would like your opinions on this please?

also in the very worst scenario what would be the worst that could happen to people savings?

I know no one has a crystal ball but better to be safe than to be sorry if there is such a thing as playing safe.

Malthusian

needmorehelp wrote: »

I know that at the best of times its better not to have more than 85k in any one bank for compensation reasons, but in this era and with great uncertainty around Brexit and what could happen in the financial sector, is it even more prudent NOT to have more than 85k in any bank?

No.

So if things start to look very hairy I probably think its advisable to be on the safe side and take the access out, would like your opinions on this please?

What are you planning on doing with your surplus over £85k?

also in the very worst scenario what would be the worst that could happen to people savings?

A theocracy which believes that "money is the root of all evil" could seize power and order that everyone in the UK must roll a 100-sided dice, and everyone who scores less than their savings divided by 1,000 is taken outside and shot.

That in my opinion would be the very worst scenario for savings.

Linton

needmorehelp wrote: »

Hi,

I know that at the best of times its better not to have more than 85k in any one bank for compensation reasons, but in this era and with great uncertainty around Brexit and what could happen in the financial sector, is it even more prudent NOT to have more than 85k in any bank?

So if things start to look very hairy I probably think its advisable to be on the safe side and take the access out, would like your opinions on this please?

Put it in another bank or safest of all, in NS&I which provides 100% coverage for any amount. In any case £85K+ in cash is not a very good idea anyway unless you intend to spend it in the next few years since you will lose out to inflation.

also in the very worst scenario what would be the worst that could happen to people savings?

Mutant zombie invasion? Collapse of the world economy? Boris Johnson chosen as next PM? Any of these followed probably by collapse of the £ and rampant inflation making your £85K worth a tin of beans.

I know no one has a crystal ball but better to be safe than to be sorry if there is such a thing as playing safe.

ISTM that you only need to play as safe as is necessary for the risks to be comparable with the other risks in your life that you accept on a daily basis - fatal traffic accident, being struck by lightning, fatal illness etc etc

Zanderman

Brexit is irrelevant - you shouldn't have more than £85k in one place anyway. And the problem, if/when it comes may not be brexit - see https://www.theguardian.com/business/2018/dec/11/imf-financial-crisis-david-lipton

But if you do have more than £85k in one place, and it's not the recent proceeds of a house sale or similar (and therefore enjoys higher protection for a time) then move some elsewhere.

As for worst case scenario - your guess is as good as anyone else's - but in principle if a bank went belly-up and you had more than £85k in it you'd lose the excess completely. And might have to wait a while to get the £85k too if the banking system is in major crisis.

Don't worry about it though - because firstly it's not likely and secondly, if it does happen, you can't do anything about it.

Just chill - but make sure you don't have more than £85k in one place first!