House sale proceeds bank question

curtis122

As there is good chance we will go into a rental on the sale of our house, this means the proceeds from the sale of our house will be sat in savings till we use it to buy another one.

I understand the FSCS covers you for 1 Million for 6 months but is this only for the money for your house or is it all money in your account including the added house sale money?

For example if I sell my home for 500k and I add this money to an account with an existing 100k already in it. Will the whole 600k be covered?

What happens if we were to split the 500k between 2 accounts with other money also already in it, and one bank went bust, would all the money be covered still or does it have to stay in one account?

Emmia

The usual limit is £85k per person, per banking group. There's a short term high balances protection, but if you've already got £100k in an sole person account you're already exceeding the £85k limit

https://www.fscs.org.uk/what-we-cover/

Albermarle

Suggest you read the details on their website carefully.
Temporary high balances | Check your money is protected | FSCS

Another alternative is to keep your money in a NS&I account which will have unlimited cover.
However the interest rates are not great.

AskAsk

not sure where you got the 1m from but unfortunately, it is only 85k for each bank.  subsidiaries of a bank won't count, so lloyds and halifax for example, would only count as one bank.

so yeah, you will have a headache trying to find lots of banks to deposit the money if it is a large amount.

gazfocus

AskAsk said:

not sure where you got the 1m from but unfortunately, it is only 85k for each bank.  subsidiaries of a bank won't count, so lloyds and halifax for example, would only count as one bank.

so yeah, you will have a headache trying to find lots of banks to deposit the money if it is a large amount.

The op is referring to the temporary cover which the FSCS link above states is 1m for 6 months.