FCSC Protection

Spenny79

I am about to sell my house and also receive my pension lump sum both of which will eventually go towards a new house but, in the meantime, I intend to rent for a while to get a better feel for the area to which I am relocating before deciding on a specific location. As these amounts add up to significantly above the FSCS limits is there a safe way to keep the money safe all in one place or will I have to spread it across numerous bank accounts to protect myself against bank failure?

1882

FSCS protects temporary high balances in your bank account of up to £1million for up to six months. The protection begins from the date the temporary high balance is credited to an individual depositor's account, or to a client's account on an individual's behalf. 

Certain life events could have caused a temporary high balance in your bank account, including:

• Real estate transactions (property purchase, sale proceeds, equity release - relating to your main residence only).
• Benefits payable under an insurance policy.
• Personal injury compensation (unlimited amount).
• Disability or incapacity (state benefits).
• Claim for compensation for wrongful conviction.
• Claim for compensation for unfair dismissal.
• Redundancy (voluntary or compulsory).
• Marriage or civil partnership.
• Divorce or dissolution of their civil partnership.
• Benefits payable on retirement.
• Benefits payable on death.
• A claim for compensation in respect of a person's death.
• Inheritance.
• Proceeds of a deceased's estate held by their personal representative.

colsten

NS&I Income Bonds or the NS&I Direct Saver are good vehicles for larger than £85k sums as they are Treasury-backed.

Spenny79

Thanks 1882 and Colsten. I have opened a NS&I Income Bond account but the temporary FSCS high balance protection gives great comfort also.