FSCS Limit

I'm seeing savings accounts with limits way in excess of the 85k FSCS protected element. Up to £2m in one case. What kind of customer is going to save this amount of money in a single pot? What's the logic?

Comments

  • BJV
    BJV Posts: 2,535
    Name Dropper First Anniversary First Post Combo Breaker
    Forumite
    It is up to £85k per account per person or £170k for a joint account .
    https://www.fscs.org.uk/what-we-cover/

    Happiness, Health and Wealth in that order please!:A
  • masonic
    masonic Posts: 22,914
    Photogenic Name Dropper First Post First Anniversary
    Forumite
    edited 19 December 2023 at 5:13PM
    It's the customer's choice, so why would the bank prevent them from exercising it? The limit is the most the bank is comfortable receiving from the saver, which in many cases will be greater than £85k.
    The customer may be protected up to £1m if the savings qualify... https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

  • Albermarle
    Albermarle Posts: 21,225
    First Anniversary First Post Name Dropper
    Forumite
    Willsie01 said:
    I'm seeing savings accounts with limits way in excess of the 85k FSCS protected element. Up to £2m in one case. What kind of customer is going to save this amount of money in a single pot? What's the logic?
    If you have Millions to put in the bank it has got to go somewhere, The real likelihood of a bank like HSBC or Barclays going under and taking all your cash with then is pretty small. In any case if you are that rich you can afford to lose the odd Million or two. 
  • born_again
    born_again Posts: 13,709
    First Anniversary First Post Name Dropper
    Forumite
    Willsie01 said:
    I'm seeing savings accounts with limits way in excess of the 85k FSCS protected element. Up to £2m in one case. What kind of customer is going to save this amount of money in a single pot? What's the logic?
    FSCS is the guaranteed payout. There is also a part for temporary high balances.
    Add in if it ever did happen, you also become a creditor for the remaining balance. 



    https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/#:~:text=You don't need to,or building society actually fails.
    Life in the slow lane
  • RedImp_2
    RedImp_2 Posts: 236
    First Anniversary First Post Name Dropper Combo Breaker
    Forumite
    If you’ve got £2m to deposit you would need accounts with 24 different providers to keep below that limit ea
  • RedImp_2 said:
    If you’ve got £2m to deposit you would need accounts with 24 different providers to keep below that limit ea
    Or NS&I.
    possibly Coutts bank.
  • Wheres_My_Cashback
    Wheres_My_Cashback Posts: 4,266
    First Anniversary Name Dropper First Post Photogenic
    Forumite
    edited 19 December 2023 at 8:25PM
    Willsie01 said:
    I'm seeing savings accounts with limits way in excess of the 85k FSCS protected element. Up to £2m in one case. What kind of customer is going to save this amount of money in a single pot? What's the logic?
    £85K is a nominal figure which means little. The chances of the majority of banks going under is absolutely tiny, probably more chance of winning the lotto and some wouldn't be allowed to go under as UK GOV would step in.
    Must be ten of thousands of people with sums far greater than that in accounts and thousands with millions.
    I certainly don't have a problem with putting more than £85k in accounts, just depends who it is and what their status is.
Meet your Ambassadors

Categories

  • All Categories
  • 341.9K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 234K Work, Benefits & Business
  • 606.2K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards