Where do Wealthy people keep their money ?

flow2

I am asking out of curiosity, as we keep hearing that the limit, in Banks etc., is £85,000 if the bank goes into administration !
So how do people, that have say 1 Million pounds, keep their money ? Do they have a lot of different accounts, all with the £85K in, or is there a different rule, for them ?

Gary1984

I suspect they invest it in property, shares, private equity, fine art etc rather than keeping it all in cash and seeing it eroded by inflation 

mebu60

flow2 said:

I am asking out of curiosity, as we keep hearing that the limit, in Banks etc., is £85,000 if the bank goes into administration !
So how do people, that have say 1 Million pounds, keep their money ? Do they have a lot of different accounts, all with the £85K in, or is there a different rule, for them ?

Depends how much is in cash. Expect most of any great wealth is invested across a range of things.

£1m in cash 'only' requires 12 FSCS protected savings institutions. 

ChesterDog

Well, for cash savings, NS&I has a limit of £2m per person, IIRC.

FSCS £85k doesn't apply there.

masonic

There's no need to keep savings at NS&I under £85k.

lisyloo

Almost certainly not in cash.
pensions, property, isas are all good places.

km1500

1 million is not wealthy

Where do people with 200 million   500 million, 5 billion keep their money?!

JGB1955

I don't consider ourselves wealthy but our £1M + is split between property, ISAs (both S&S and cash) and lots of different savings accounts.  We were, until recently, asset rich and cash poor.  The cash has risen after an inheritance and we now consider ourselves 'too old' to add to our investment accounts.  Solution?  We're going to spend it until we get to below the £1M.

mhoc

There is probably more people with assets of over 1 million especially post-covid - a home in London or the home counties, a holiday home, a business, various pensions , a few ISAs, premium bonds plus the usual cars, boats etc

wmb194

If you're worried, as much as you can deposit in NS&I - looks like £3.17m per person at the moment for new accounts - then the rest in gilts. You'll probably find that many won't worry too much about the likes of Barclays, HSBC and the like going bust overnight. Plenty of larger companies have multi-millions deposited with these banks and are uninsured.

inflationbuster

I burn millions to keep the home warm. 

Seriously NS&I, multiple savings account, stock market, pensions and gold.