Where do Wealthy people keep their money ?

Grumpy_chap

inflationbuster said:

I burn millions to keep the home warm. 

Probably cheaper than burning gas or electricity

flow2

Thanks for the answers, I was thinking of those, that had over 1 M in cash, rather than property. 

So people keep a lot more than the £85K in normal bank accounts ?

SuzzleBumpkin

Most wealthy people use a company to manage their portfolio which will be spread across different assets, which is managed depending on what level of risk they want to take. 

MX5huggy

flow2 said:

Thanks for the answers, I was thinking of those, that had over 1 M in cash, rather than property. 

So people keep a lot more than the £85K in normal bank accounts ?

Swiss bank accounts yes. I do think there’s a slight obsession on here over the £85k. Has anyone ever lost deposits in a UK bank ? 

lisyloo

Yes they have.
https://en.wikipedia.org/wiki/Barings_Bank

artyboy

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 ?

I could tell you, but then I'd have to get one of my butlers to kill you...

Daliah

MX5huggy said:

 Has anyone ever lost deposits in a UK bank ? 

You don't appear to have had money in outfits that went bust. FSCS has saved many people from losing money. £584m just alone in 2021/22, and £26.5bn since 2001. The idea that banks are as safe as houses went out of the window in 2008.

MX5huggy

Daliah said:

MX5huggy said:

 Has anyone ever lost deposits in a UK bank ? 

You don't appear to have had money in outfits that went bust. FSCS has saved many people from losing money. £584m just alone in 2021/22, and £26.5bn since 2001. The idea that banks are as safe as houses went out of the window in 2008.

What were these 66 companies? Quick look on there web site it’s all about an insurance company called MCE, an inconvenience if my scooter insurance company collapses but not life changing. 

Barings did straight cash account holders lose money? Wikipedia is not clear. 

Daliah

There is a list of failed firms on the FSCS website. The bank collapses that impacted UK account holders most were Icesave and Kaupthing but there are countless others firms that held people's savings and investments. Outside the UK, probably the most noteworthy are the Cyprus and Malta banks, where some rather wealthy people had stashed their money into accounts without paying any regard to the €100,000 Euro protection. They got some lovely 'haircuts', and their complaints remained unanswered.

Not sure why you are trying to suggest to people that ignoring the FSCS limit is not a problem. Will you reimburse them if they get caught out?

masonic

UK credit unions regularly go bust, including one that was the top pick from the MSE cash ISA page. Northern Rock and Bradford & Bingley would have done if they weren't nationalised to avoid it.