More than FSCS Limit in one bank ?

RocketRonnieRadox

Hi All,

I have received an inheritance which is 2-3 times in excess of the FSCS limit and it is all sitting in one bank.

What would be the best way to safeguard under FSCS in this kind of situation ?

Would I need to spread it in to other banks in order for it to qualify for the compensation scheme or is there a way to do it within the same bank ?

cattie

You would need to deposit it with different institutions if looking for best interest & the FSCS guarantee, but if saving with NS&I I believe there is no limit as it's linked to HM Treasury, so the whole amount can be safely deposited in one or more of their accounts.

Malthusian

RocketRonnieRadox wrote: »

What would be the best way to safeguard under FSCS in this kind of situation ?

You are already safeguarded for up to six months after the inheritance was paid.

After that you will either need to spread it between banks with different banking licences, or you can look at NS&I Income Bonds which are guaranteed by the Treasury up to £1 million per person, and pay a decent rate.

When are you planning to spend the money?

RocketRonnieRadox

Malthusian wrote: »

You are already safeguarded for up to six months after the inheritance was paid.

After that you will either need to spread it between banks with different banking licences, or you can look at NS&I Income Bonds which are guaranteed by the Treasury up to £1 million per person, and pay a decent rate.

When are you planning to spend the money?

thank you, I was intending on using the money to move house but it has sat untouched for 3 years now so I cant answer 100% but if a house comes up that we like might use it in the short term, if not then no other plans for it at present.

colsten

RocketRonnieRadox wrote: »

it has sat untouched for 3 years now

Move the surplus, or even all of it, now. You could have lost a lot of of money if your bank had gone tits up. Don't continue chancing it.