Temporary high balance in a bank account safety

Abzinthe
Abzinthe Posts: 26
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edited 8 January at 6:56PM in Budgeting & bank accounts
Hi I am looking at putting a temporary High balance of money into a bank account for a short time how safe would that be ?
I know most banks offer the £85k funds as protected but as I want to keep a high amount for a short time are there any options available to me . This Fund is for a Purchase.
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  • eskbanker
    eskbanker Posts: 29,881
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    A purchase of what?

    The FSCS temporary high balances page explains the criteria for judging whether the event qualifies, but also includes the caveat that reimbursement may not be swift:
    To prove you've held a temporary high balance, we may ask for proof 

    [...]

    the evidence required will depend on the life event of your individual circumstances. If you provide the relevant supporting evidence, we'll pay you compensation within three months.

    In asking the question about safety of this approach, what alternatives are you considering?
  • Abzinthe
    Abzinthe Posts: 26
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    edited 8 January at 7:11PM
    eskbanker said:
    A purchase of what?

    The FSCS temporary high balances page explains the criteria for judging whether the event qualifies, but also includes the caveat that reimbursement may not be swift:
    To prove you've held a temporary high balance, we may ask for proof 

    [...]

    the evidence required will depend on the life event of your individual circumstances. If you provide the relevant supporting evidence, we'll pay you compensation within three months.

    In asking the question about safety of this approach, what alternatives are you considering?
    Hi it will be for a Property Purchase 
    I think alternatives would be spread out the balance across different banks so are at 85k but when I will have to make payment to my lawyers those transfers which usually be a Chaps payment I will be charged a fee for each while if the whole balance is in one bank I will only be charged one for that transfer 
  • Shakin_Steve
    Shakin_Steve Posts: 2,675
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    In theory, all of the above applies. In practice, can you actually see any of the mainstream banks going bust?
    I came into this world with nothing and I've got most of it left.
  • Abzinthe
    Abzinthe Posts: 26
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    edited 8 January at 7:39PM
    In theory, all of the above applies. In practice, can you actually see any of the mainstream banks going bust?
    Hi it’s not so much the bank going bust but if the funds was lost say through a fraud/Scam etc
  • Mark_d
    Mark_d Posts: 283
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    Abzinthe said:
    In theory, all of the above applies. In practice, can you actually see any of the mainstream banks going bust?
    Hi it’s not so much the bank going bust but if the funds was lost say through a Scam etc

    If my understanding is correct then the £85k FSCS protection is protection against the bank going bust, rather than protection against fraud/scam.  I believe that NS&I offers complete protection in this respect.
    In terms of protection from fraud/scam, the banks do their bit to protect you but you also need to be extremely careful to protect yourself and your money.  And if you take precautions then I believe you would be protected if the worst was to happen.
    For me I think it would be easier to be tighter on security if you're just dealing with one bank
  • Abzinthe
    Abzinthe Posts: 26
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    Mark_d said:
    Abzinthe said:
    In theory, all of the above applies. In practice, can you actually see any of the mainstream banks going bust?
    Hi it’s not so much the bank going bust but if the funds was lost say through a Scam etc

    If my understanding is correct then the £85k FSCS protection is protection against the bank going bust, rather than protection against fraud/scam.  I believe that NS&I offers complete protection in this respect.
    In terms of protection from fraud/scam, the banks do their bit to protect you but you also need to be extremely careful to protect yourself and your money.  And if you take precautions then I believe you would be protected if the worst was to happen.
    For me I think it would be easier to be tighter on security if you're just dealing with one bank
    I plan to keep the Money for say around 2 weeks roughly in a Bank , So I guess the bank does or should hold responsibility for my funds ,
    I know during the Pandemic the banks / FSCS was protecting funds for £1m during that period.
  • Zanderman
    Zanderman Posts: 4,617
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    edited 8 January at 7:51PM
    Abzinthe said:
    Mark_d said:
    Abzinthe said:
    In theory, all of the above applies. In practice, can you actually see any of the mainstream banks going bust?
    Hi it’s not so much the bank going bust but if the funds was lost say through a Scam etc

    If my understanding is correct then the £85k FSCS protection is protection against the bank going bust, rather than protection against fraud/scam.  I believe that NS&I offers complete protection in this respect.
    In terms of protection from fraud/scam, the banks do their bit to protect you but you also need to be extremely careful to protect yourself and your money.  And if you take precautions then I believe you would be protected if the worst was to happen.
    For me I think it would be easier to be tighter on security if you're just dealing with one bank
    I plan to keep the Money for say around 2 weeks roughly in a Bank , So I guess the bank does or should hold responsibility for my funds ,
    I know during the Pandemic the banks / FSCS was protecting funds for £1m during that period.
    Only 2 weeks? Stop worrying! The temporary high balance provision should cover you. And, if only for 2 weeks you could waste most of the first week moving it around (and suffering delays as the banks hold back transfers to ask where it comes from)!
  • Abzinthe
    Abzinthe Posts: 26
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    Zanderman said:
    Abzinthe said:
    Mark_d said:
    Abzinthe said:
    In theory, all of the above applies. In practice, can you actually see any of the mainstream banks going bust?
    Hi it’s not so much the bank going bust but if the funds was lost say through a Scam etc

    If my understanding is correct then the £85k FSCS protection is protection against the bank going bust, rather than protection against fraud/scam.  I believe that NS&I offers complete protection in this respect.
    In terms of protection from fraud/scam, the banks do their bit to protect you but you also need to be extremely careful to protect yourself and your money.  And if you take precautions then I believe you would be protected if the worst was to happen.
    For me I think it would be easier to be tighter on security if you're just dealing with one bank
    I plan to keep the Money for say around 2 weeks roughly in a Bank , So I guess the bank does or should hold responsibility for my funds ,
    I know during the Pandemic the banks / FSCS was protecting funds for £1m during that period.
    Only 2 weeks? Stop worrying! The temporary high balance provision should cover you. And, if only for 2 weeks you could waste most of the first week moving it around (and suffering delays as the banks hold back transfers to ask where it comes from)!
    Hi thanks for your reply it could be around 2 weeks or so until I transfer the whole funds to my Lawyer, Just being careful too much fraud and scams going on so just getting advice as pretty sure people have been in this same situation with high funds ready to transfer over.
  • born_again
    born_again Posts: 13,627
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    Abzinthe said:
    In theory, all of the above applies. In practice, can you actually see any of the mainstream banks going bust?
    Hi it’s not so much the bank going bust but if the funds was lost say through a fraud/Scam etc
    FSCS has nothing to do with fraud or scams..
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