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Bank guarantees under FSCS
mrmmhf
Posts: 111 Forumite
The way I understand it, under the Financial Services Compensation Scheme (FSCS), £85,000 per person, per institution is protected if a bank, building society or credit union goes bust. Joint accounts have a protection level of £170,000.
If I have a bank account with Lloyds with more than £85,000 in it, should I move the excess to another bank, and will that amount be fully protected by the FSCS even if they’re in my name?
If I have a bank account with Lloyds with more than £85,000 in it, should I move the excess to another bank, and will that amount be fully protected by the FSCS even if they’re in my name?
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Comments
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Yes, you need to move the excess away from Lloyds group for protection.
Why all with Lloyds anyway?? What accounts/interest are you getting?How's it going, AKA, Nutwatch? - 12 month spends to date = 3.24% of current retirement "pot" (as at end December 2025)0 -
Not necessarily "group"? I understand the Halifax/BoS side of the Lloyds Banking Group has it's own banking licence, but that licence also includes some savings account providers such as Birmingham Midshires et al.Yes, you need to move the excess away from Lloyds group for protection.
OP, does the amount qualify as a 'temporary high balance', ie from the sale of a property? If so then you're protected (up to a certain amount and for a short period) at Lloyds.0 -
https://www.bankofengland.co.uk/prudential-regulation/authorisations/financial-services-compensation-scheme
scroll down to PDFs listing Banking & Building Society Brands covered as @ June 20190 -
Why all with Lloyds anyway?? What accounts/interest are you getting?
It was a matter of convenience.
Interest = 0.
Need to get our money for us now too.0 -
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You could think about putting it in NS&I direct Saver in that way everything will be covered even the money above 85000 and you will at least get 1% interest0
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If however you are deliberately trying to get zero interest because for example you don't want to have to declare it on your tax return then you simply move the excess to another bank although I do believe but I'm not certain that the banks report capital to HMRC as well as interest received but someone else might be able to clarify that tfor you0
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Even if they did report capital, which I don't believe they do, it doesn't matter. We don't have any wealth taxes (yet!).If however you are deliberately trying to get zero interest because for example you don't want to have to declare it on your tax return then you simply move the excess to another bank although I do believe but I'm not certain that the banks report capital to HMRC as well as interest received but someone else might be able to clarify that tfor you0 -
You could think about putting it in NS&I direct Saver in that way everything will be covered even the money above 85000 and you will at least get 1% interest
The 1% return is nominal (albeit better than the 0% we're at now). I think we'd better off investing it. We're not big on risk so stocks and share are out. Was thinking property could be a decent return.0 -
We also have funds offshore, also with Lloyds. They have separate (lower) guarantees, but are they considered part of Lloyds group?0
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