to transfer Money to other banks?

(27 Posts)
helpbuyingahouse Sat 04-Jun-16 08:20:50

So, we sold our house, moved into rented and we are in the process of buying another one.

We won't complete before the referendum. The money is significantly above the guaranteed limit of £75k.

Would you spread the money across other banks? Could Brexit cause a run on the banks?

I prefer to keep all the money in one place for ease, but obviously I don't want to lose it.

Would be grateful for your thoughts. Thanks!

GirlOutNumbered Sat 04-Jun-16 08:22:44

I would always spread money to make sure it was covered, just in case of anything!

GuybrushThreepwoodMightyPirate Sat 04-Jun-16 08:23:29

When my dad did this he put all/most of it into NS&I premium bonds. I don't know if that was a brilliant plan but he is cautious so it was probably very safe. He won a lot of prizes in the few months that he had all those Bonds!

littleblackno Sat 04-Jun-16 08:24:00

I don't really know anything about finances but personally I would split it between banks. No idea what effect the eu could have and that's part of the problem- the uncertainty. I wouldn't risk it myself.

helpbuyingahouse Sat 04-Jun-16 08:26:00

Thanks I would have normally done so, but as we are buying another house, it is easier to keep it all together.

But since it seems consensus is to split, I will.

Unfortunately (or fortunately) the money is significantly above the premium bonds threshold.

orangebird69 Sat 04-Jun-16 08:26:02

Split it bewteen banks but make sure the banks you choose aren't part of the same group...

Impatientwino Sat 04-Jun-16 08:28:28

We had the same issue a few years ago as we had a 7 month gap between selling our old house and buying the new one.

Absolutely move your money to protect yourselves not necessarily because of the referendum - you should do it anyway.

We banked with HSBC and First Direct and were told that as they were owned by the same people it would count as one institution - not sure if that's 100% true but we opened a saver with a completely different building society to be on the safe side.

Savagebeauty Sat 04-Jun-16 08:30:17

You're covered up to a million under temporary high balance rule, provided you only keep it in the account for six months.
I'm in a similar position. Going with NS &I

helpbuyingahouse Sat 04-Jun-16 08:30:50

I am opening a Tesco Bank account as we speak. We also have another couple of dormant bank accounts that I will reopen.

You are right, small hassle but potentially huge loss if something goes wrong.

Thanks!

aginghippy Sat 04-Jun-16 08:34:20

This page has a table showing which banks or brands are in the same group.

Savagebeauty Sat 04-Jun-16 08:35:56

Yes aginghippy really important

helpbuyingahouse Sat 04-Jun-16 09:16:48

Thanks all, am doing that now. Mumsnet is GOOD!

Noodledoodledoo Sat 04-Jun-16 09:19:21

Definitely split. Just watch out for closing/withdrawal criteria. I had to do this due to 12 month gap between selling and buying and found a good deal on interest but failed to notice the 90 day notice period - had had an account with same provider before which allowed 2 withdrawals with no penalty so thought it was the same rules! My mistake but wouldn't even let me take it without the interest!

Mine issue in long run but luckily mortgage was increased to higher amount for the three weeks we need it and now have a large overpayment!

Allow for interest in the 75k limit as well.

MsRinky Sat 04-Jun-16 09:32:02

Actually you get FSCS coverage for £1 million for six months for temporary high balances, such as when you've sold a house.
www.fscs.org.uk/what-we-cover/questions-and-answers/qas-about-temporary-high-balances/

Whatthefoxgoingon Sat 04-Jun-16 09:47:50

Yeah, split it. We had to split ours between many banks: be careful to note which banks are actually under the same umbrella as you only get one guarantee for both.

helpbuyingahouse Sat 04-Jun-16 10:25:51

Thanks all, we sold our house 8 months ago so the 6 months rule doesn't apply.

Just done the first batch of transfers. Who owns Tesco bank? I couldn't find it on the link. It is not tsb, Hsbc or Barclays right?

Obviously Tesco owns it, but I was wondering if the financial services are provided by a third party.

Thanks again for giving me the motivation to go through this hassle.

AdoraBell Sat 04-Jun-16 10:31:30

I don't know who owns them, but if you have funds in a joint account then it's 150, not 75.

Hodooooooooor Sat 04-Jun-16 10:31:39

Isn't this just rather silly paranoia? You've been listening to too many politicians.

helpbuyingahouse Sat 04-Jun-16 10:54:11

A run on the banks can be caused by paranoia. See Northern Rock, I know with Certainty that they were about to run out of money and if the government hadn't stepped in, they would have collapsed.

paranoia can actually cause a bank run, so better safe than sorry.

Hodooooooooor Sat 04-Jun-16 10:59:18

And if my aunt had balls she'd be my uncle! IF they had run out of money and IF the government hadn't stepped in....but they did.

If paranoia can cause a bank run, then stop spreading paranoia. And vote IN.

wonkylegs Sat 04-Jun-16 11:03:51

Tesco Bank is now wholly owned by Tesco, RBS used to own a stake but they bought them out in about 2009

wonkylegs Sat 04-Jun-16 11:07:00

en.m.wikipedia.org/wiki/Tesco_Bank

caroldecker Sat 04-Jun-16 11:11:41

The bank guarantee issue has arisen even without a general crash - remember BCCI?

There is no point not splitting the cash as it is cost free and painless.

helpbuyingahouse Sat 04-Jun-16 11:26:59

I have already cast my postal vote for RemaIN. Can't do much more than that I am afraid.

Mrskeats Sat 04-Jun-16 11:29:18

Defo wise to split it
I did this when I sold a house
We won't exit though I would bet my bottom dollar on that
It will be like the Scottish referendum
When it comes to it there are too many unknowns

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