Inheritance funds - how protected are they

Kmorga

Having recently inherited a large amount of money. I wish to know how protected this is is the bank went bust

i know £85k is protected normally but is it different for inheritance funds in a bank account?

thanks 

Malthusian

Yes - you get £1 million "temporary high balance" cover for six months since the inheritance entered the bank account.
After that, if you still want to keep it as cash, you should spread the money around, use a "savings platform" (which spreads it around for you) or move it to NS&I. (Their Income Bonds and Direct Saver accounts have max limits of £1 million and £2 million per person respectively, and are effectively as safe as FSCS-protected deposits.)

Albermarle

If you have inherited a very large amount of cash, then it will probably be a good idea to invest some/most of it at some point. If you are not familiar with the world of investing, you can start learning, or if it is really a lot then you may be better off employing an IFA.