£85000 bank account protection.

Camping

I've just discovered that in a " Life Change Event" such has selling your house or receiving Inheritance,your account is protected up to £1000000 for 6 months.
This is useful to know you have upto 6 months to sort your finances and have your savings protected.

theartfullodger

Source & link please?

Government can change the regulations pretty much whenever they wish.  Nothing is for certain.

RedFraggle

https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

I know others have been advised it covers divorce settlements (division of assets etc. ) 

badger09

theartfullodger said:

Source & link please?

Government can change the regulations pretty much whenever they wish.  Nothing is for certain.

FSCS Temporary High Balance cover

https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

Aberdeenangarse

I was in this position at the end of last year, having sold my Partners home for nearly £600k. In the end we opened up a number of easy access accounts and stashed it away in £80k batches, allowing for interest on top, and earning nearly 3% on accumulated accounts. We’d have had to pay over £5k a year just keeping the house empty, and as house prices are certainly not rising at the moment we’re feeling rather chuffed!

ProDave

This was covered in another thread.  It does NOT cover the proceeds of selling a house that was not your main residence, i.e a buy to let.

SiliconChip

Nothing at all new in this, it's come up many, many times on various boards across the site. I've used it myself when I held more than £85K in a single account when undertaking Executor duties.

For the OP's benefit, if you have more than £1 million or if it's going to take more than 6 months to move balances on then National Savings and Investments will cover significantly larger sums, and their interest rates have gone up in recent time (e.g. the Direct Saver covers up to £2 million and now pays 2.85%).

user1977

SiliconChip said:

For the OP's benefit, if you have more than £1 million or if it's going to take more than 6 months to move balances on then National Savings and Investments will cover significantly larger sums

And obviously, are only going to get into trouble if the government goes bust - in which case we'll have bigger things to worry about...

I suppose another thing to bear in mind is that if your bank goes under, there's undoubtedly still going to be some disruption - your money might eventually be safe but that might not help you if it happens in the middle of a transaction and need the cash urgently.

km1500

Aberdeenangarse said:

I was in this position at the end of last year, having sold my Partners home for nearly £600k. In the end we opened up a number of easy access accounts and stashed it away in £80k batches, allowing for interest on top, and earning nearly 3% on accumulated accounts. We’d have had to pay over £5k a year just keeping the house empty, and as house prices are certainly not rising at the moment we’re feeling rather chuffed!

did you have any problems transferring such large amouts between institutions eg faster payment limits or your bank's fraud filters kicking in blocking your account?

BobT36

Aberdeenangarse said:

In the end we opened up a number of easy access accounts and stashed it away in £80k batches, 

I hope that "number of accounts" is across different financial institutions / companies and not all within the same one... 

"Protection is across all accounts held within the bank/banking group, not per account."
https://www.fscs.org.uk/industry-resources/deposit-protection-banks/#:~:text=FSCS protects each of you,within the bank/banking group.

SandyN21

I sold my house last March and looking to buy my 'forever home' - since then I've had £500K sitting in a NS&I account and the remainder sitting in various high interest saving accounts + £50K in Premium Bonds (I usually win something every month).