Diploma for Financial Advisers
Diploma in Accounting
Member of London Institute of Banking and Finance

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When it comes to savings, safety is a top priority for everyone. Is it safe to have more than 85000 in bank in the UK? The short answer is: it depends. While banks in the UK are generally considered very secure, there are limits to how much of your money is protected if something goes wrong. Let’s explore what you need to know.

The £85,000 Protection Limit

In the UK, your savings are protected under the Financial Services Compensation Scheme (FSCS). This scheme protects up to £85,000 per person, per bank. If a bank were to fail, the FSCS guarantees you will get your money back – up to this limit.

For joint accounts, the protection doubles to £170,000 because each person is covered up to £85,000.

What Happens If You Have More Than £85,000?

If you have more than £85,000 in a single bank, any amount above this limit may not be protected. For example, if you have £90,000 saved and your bank collapses, you could lose £5,000. That’s why it’s important to plan carefully when you have large savings.

How to Keep Your Money Safe

Here are a few simple strategies to protect your money if you have more than £85,000:

1. Spread Your Savings Across Banks The £85,000 FSCS limit applies per bank. By spreading your money across different banks, you can maximise your protection. Be cautious, though, as some banks are part of the same banking group and share the same FSCS coverage.For example:
   • HSBC and First Direct are part of the same group.
   • Halifax and Bank of Scotland are under Lloyds Banking Group.
   Always check if your banks are connected before splitting your money.
2. Consider Joint Accounts A joint account increases the protection to £170,000 because each account holder gets £85,000 of cover. This is a good option for couples or business partners.
3. Look at Other Financial Products Some savings accounts, like those offered by National Savings and Investments (NS&I), are backed by the government and offer 100% protection for your money, regardless of the amount.

Are UK Banks Safe Overall?

UK banks are considered some of the safest in the world. The FSCS exists to reassure customers and protect their savings. While it’s unlikely for a major UK bank to fail, it’s always smart to be cautious and stay within the FSCS limit to avoid unnecessary risks.

Conclusion

So, is it safe to have more than 85000 in bank in the UK? Not entirely. While UK banks are secure, the FSCS only protects up to £85,000 per person, per bank. To keep your savings fully protected, spread your money across multiple banks, consider joint accounts, or explore other safe options like NS&I.

By understanding these rules, you can enjoy peace of mind knowing your hard-earned money is secure.

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