question on fscs limits

markyb12

i have a saving account with marcus with the fscs limit of £85k
my partner has her own personal account with about £10 k in it.
we have just opened a joint account after selling a house and have maxed that out at £85k
so are we  protected for £85k each personal account and 85k for the joint account, or is it just 85k each 
if so is there another bank that gives a similar interest rate to marcus. yeah i know its only 0.50% but its giving me £38 a month on my own persona account

Zanderman

Just 85k each I think.
But proceeds from a house sale fall under the temporary high balance rules so the 85k limit will not yet apply if it's a recent sale:
https://www.fscs.org.uk/how-we-work/claims-process/temporary-high-balances/

EssexExile

It's £85k total per person with each banking entity. As Zanderman says house sale proceeds are treated differently.

eskbanker

markyb12 said:

...after selling a house...

Was that house your main residence?  If so, then the above-referenced FSCS temporary high balances provision offers increased protection, but it wouldn't do so for a BTL, for example....

In terms of your question about other homes for your surplus money, https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/ lists some alternatives to Marcus, and Premium Bonds are currently a more competitive alternative than usual, given generally depressed easy access interest rates.

markyb12

Thanks for the replies 
the house was my mums house after she died,
it was only £108k after fees 
40k is to be used eventually for mums care home bill ,
The sale money was paid in to my nationwide account , and I transferred it to Marcus to benefit from the £39 a month interest it will generate 
so are both me and the missus covered on our single accounts , but the joint account wouldn’t be covered 

eskbanker

markyb12 said:

Thanks for the replies 
the house was my mums house after she died,
it was only £108k after fees 
40k is to be used eventually for mums care home bill ,
The sale money was paid in to my nationwide account , and I transferred it to Marcus to benefit from the £39 a month interest it will generate 
so are both me and the missus covered on our single accounts , but the joint account wouldn’t be covered 

As above, FSCS doesn't offer temporary high balance protection for house sale proceeds if not your main residence, but it does cover inheritance.  However, £40K for outstanding care home costs should be an estate liability, so if that's still to be deducted from the sale proceeds then you should really be ring-fencing estate money away from your own personal accounts, via an executor account or similar.

etienneg

My understanding is that, for FSCS purposes, money in a joint account is treated as belonging 50% to each account holder. In this case, you are covered for the £85k in your own sole account and your wife would be covered for the £10k in her sole account and 42.5k (that is, her 50%) of the joint account. BUT I am not an expert, and if anyone knows better I (and the OP!) would be pleased to hear otherwise.

markyb12

etienneg said:

My understanding is that, for FSCS purposes, money in a joint account is treated as belonging 50% to each account holder. In this case, you are covered for the £85k in your own sole account and your wife would be covered for the £10k in her sole account and 42.5k (that is, her 50%) of the joint account. BUT I am not an expert, and if anyone knows better I (and the OP!) would be pleased to hear otherwise.

Yeah that makes sense 
I need to find another bank that we can open a joint account for now that offers similar interest to Marcus ,
I should do fixed term , as we don’t need most of our savings for now , but I always worry about them incase I need to get it out