Financial Services Authority

trashcan_2

Are a lot of people thinking that because a Bank is regulated by the FSA and that they are covered up to £35,000, that they are going to get there money back the next day.

OK i can see that perhaps they will get up to £35,000 back but I bet its a very long draw out process, and if its all the money you have got, I would be still inclined not to put all my eggs in one basket

LongTermLurker

I back that philosophy. The most sensible thing to do is build a portfolio of cash in much the same way you would do shares, the aim being to ensure that if one account went beyond reach, you would be able to cover all eventualities for the next 6 months from other sources.

Term deposits and ISAs aren't so important in this respect, because you would expect not to be able to get at the cash for a year. However, you may find that your 1 year tie-in becomes 18 months! Instant Access money is far more critical.