Oaknorth bank - is it prudent to have more than £85k in account?

cwep2

I have a various times kept over the £85k amount in banks. I would only do so for any meaningful amount of time for GSIBs or UK clearing banks - these are like the bedrock of either the international financial system, or UK financial system respectively. So I wouldn't be worried about 160k in Chase or Santander or HSBC. Of course NS&I is also backed 100%.

Beyond that, if a bank has listed shares (think Metro bank or Close brothers) you can use the share price as a decent indication. If I were to go above 85k in one of these banks I'd have an alert on the share price dropping 10% in a day or making a new 1yr low. In that case I'd be moving anything over 85k out. I'd also think twice given recent worries about both listed examples above and doubt I'd take that risk in the first place.

But a notice account or fixed term bond is particularly risky as you can't react even if there are risks cited in the press. I have the Oaknorth notice account myself, and whilst I have at times held several times the FSCS protected amount in various banks, I have not done so with Oaknorth. 

flopsy1973

Sorry about the the poorly title no panic meant.  So maybe put a request to withdraw then to take it back to the 85k limit ? 

eskbanker

flopsy1973 said:

Sorry about the the poorly title no panic meant.  So maybe put a request to withdraw then to take it back to the 85k limit ? 

Depends on your attitude to risk but most on here would stick to the £85K limit, after allowing for accrued interest, so reduction to £80K or less (reflecting the interest already earned on the higher balance) would be prudent....