Working in the financial industry for over 30 years, Rachel Thrussell is the leading independent expert on UK savings products. Her views are constantly in demand from both the industry and the press.
I’m about to sell my house and for a short amount of time I will have around £200,000 in my bank account. Should I split this between banks so that it’s all protected under the compensation rules?
As long as the funds remain in the account for less than six months, you won’t need to go through the hassle of splitting them up. Depositors with temporarily high balances are covered up to £1 million for six months from the date on which the money is transferred into their account, or the date on which they became entitled to the amount – whichever is later.
This rule is specifically designed to protect people in your situation. It’s for those who deposit funds over the Financial Services Compensation Scheme protection limit of £85,000 until they have the time to spread the funds between institutions, as a result of specified events. These include selling a house, a divorce settlement or inheritance.
|1 Year Fixed Rate Bond||1.46%|
|2 Year Fixed Rate Bond||1.65%|
|3 Year Fixed Rate Bond||1.85%|
|4 Year Fixed Rate Bond||2.11%|
|5 Year Fixed Rate Bond||2.14%|
|11 December 2018|
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