Temporary Large Balance protection

Pat38493

I am just trying to check whether the temporary protection still applies if I move the funds from the account it was originally sent to.

Example:

I sell my house main residence for net receipt of £700K from solicitor.  Proceeds goes into account A which pays low/no interest.

I move £500K into account B pending completion of onward house purchase within 6 months.

I move the remaining £200K into account C pending investment decisions.

According to the below thread from 2022/23, it seems that there was some confusion about whether the protection still applied, but it was confirmed to one poster by FSCS that it still applies.

Has anything changed in the last couple of years there?

https://forums.moneysavingexpert.com/discussion/6360424/fscs-temporary-high-balance-protection?utm_source=community-search&utm_medium=organic-search&utm_term=Temporary+large+balance+protection

masonic

You'd still need to submit evidence of source of funds, with FSCS making a decision on a case by case basis. The expectation would be that it would be covered. I don't think there is any known precedent for a temporary high balance claim having been made.

SnowMan

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

You can move the funds to another account in your name and maintain the protection

Pat38493

masonic said:

You'd still need to submit evidence of source of funds, with FSCS making a decision on a case by case basis. The expectation would be that it would be covered. I don't think there is any known precedent for a temporary high balance claim having been made.

Thanks - I guess to be double safe, it would be better to keep the larger part in a proper large bank, and not one of these institutions that uses other banks as this would make it more complicated if anything happened.

masonic

Pat38493 said:

masonic said:

You'd still need to submit evidence of source of funds, with FSCS making a decision on a case by case basis. The expectation would be that it would be covered. I don't think there is any known precedent for a temporary high balance claim having been made.

Thanks - I guess to be double safe, it would be better to keep the larger part in a proper large bank, and not one of these institutions that uses other banks as this would make it more complicated if anything happened.

I hadn't thought of that, but yes I'd imagine that could muddy the waters somewhat.

soulsaver

Or if you were prepared to sacrifice top rates for sleeping easy check NS&I for treasury backed savings.