What are the ways to protect my money?

Donkey1975

Hi everyone, I have recently come into some money via inheritance. I'm petrified of my bank being hacked or something happening with my bank where I lose it all.

Is my best option to just split it over a few different banks or can you advise on other things I can do?

Thank you so much.

elsien

how much money are you talking about?

nomorekids

Exactly right @Donkey1975 dont have more than £120K in any banking group and yes split it. Think pots or chunks of money and what you'd like to do with it, not set in stone but once you start the process, you'll realise you dont need it all instant access in a current account for instance. Then put each chunk where it works the best in terms of interest rate and access for now whilst you sort the life stuff out like ISA's and pensions (which then means you are in the world of tax efficiency) and if you want to investment accounts also. This all takes time so dont rush, just be satisfied your "for now" decisions are the best for now and run with them. Moneyfacts.co.uk is great and so is this forum, good luck with it all.

Emmia

https://www.fscs.org.uk/what-we-cover/ - information from the FSCS about cover

You get £120k protection against the bank failing per regulated financial institution - so if it's more than that you can split it.

How to avoid your account(s) being emptied by fraudsters, requires doing basic security stuff - don't click on random links, don't respond to cold calls from "your bank"... i.e. the same stuff whether your account has £10 or £10million in it.

sausage_time

You also get FSCS cover of up to £1.4M for for 6 months major life events, such as selling your home or receiving an inheritance.

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

Nasqueron

https://forums.moneysavingexpert.com/discussion/6669120/what-are-the-ways-to-protect-my-money

The chance of a bank "being hacked" and your money being lost is essentially zero, at the point where someone could empty customer accounts with a direct attack on the bank, we are all screwed. Unfortunately the reality is, the weakest link is always the user e.g. being scammed by phishing attacks, phone calls pretending to be the bank etc.

The FSCS protection covers you as above.

Follow all the basic security checks - never give out passwords, OTP codes, never download any software after a call or give remote access to phone or computer, never move money out etc

Depending on what you want and the sums involved, for a longer term growth that statistically beats cash, £20k in a S&S ISA would be the best

Middle_of_the_Road

https://forums.moneysavingexpert.com/discussion/6669120/what-are-the-ways-to-protect-my-money

Simple. Don't keep unnecessary amounts of cash in a current account. Apart from the fact it earns no interest, it's less secure than if it was in a savings account.

Chief_of_Staffy

It is legally impossible for you to have your money stolen from a bank, unless you are negligent and facilitate the theft. It is also impossible for your bank account to be 'hacked'. What often happens is that people are negligent with their details, fall for scams and allow third parties access to their credentials (although the banks are mandated to refund in most of these cases anyway, in order to 'maintain faith in the banking system', so even sending money to Brad Pitt for his leg operation on a North Sea oil rig is unlikely to leave you out of pocket).

Middle_of_the_Road

https://forums.moneysavingexpert.com/discussion/comment/82007268#Comment_82007268

Disagree, if your card is stolen you could easily have money stolen via unauthorized purchases up to the contractles limit.

Chief_of_Staffy

https://forums.moneysavingexpert.com/discussion/comment/82007458#Comment_82007458

You couldn't. In the event of a stolen card it's the bank's money that is stolen. This isn't a technicality, it's a fundamental principle. The only way that liability can be passed onto the card holder is if they had been demonstrably negligent, and even then flagrantly so.

born_again

https://forums.moneysavingexpert.com/discussion/comment/82007458#Comment_82007458

Which would be refunded, as soon as bank is made aware. PSD.