£85k per financial institution?

[KenzoBaby]

Hello, I'm a long way from saving/investing this amount but just wondered...does this mean you should have various different pension providers and isa providers? At present, I have all my pension money with Transact and all my Stocks & Shares ISA money with Vanguard. Should I start saving elsewhere when each gets near 85? ( in the year 2040!) Thanks

No, it's different - money in stocks/shares can go up or down - the FSA protection doesn't extend to that

swimster that' not true. FSCS protection will cover £85k of investments if the firm fails. It won't cover money lost due to market movement, but you will get the value of your investments back if the firm holding your investments goes under.

But surely that depends on how your money is invested. If my SIPP provider fails, I am still the beneficiary of the underlying investments

swimster only if those investments can be identified. There could be a shortfall in the assets held if they have not reconciled them correctly. Or if your broker lends stock out, or the custodian fails then your assets on paper might not exist in reality.

If you want all your money in one place National Savings and Investments is backed by the Treasury so it’s safe

NS&I only lets you hold £50k per person thought. So well under the £85k limit.

I might be wrong, but I thought NS&I only allowed £50k of premium bonds, but permits more of their other accounts?

Will the £85k protection still exist once the Brexit transition period finishes? It's based on EU law, I think.

There isn’t a limit with NS&I
It’s backed by the Treasury

Oh, this has made me think. I've been aware of the £85k limit for savings but DH's pension?!. It's his employer scheme, money purchase, worth more than £85k currently and managed by a household name insurance company.

Should he do something about that? Can he even do something about that, as it's the company scheme?

@Alloverthegrapevine Depending on the type of pension contract that the scheme is, it could be protected up to 100% if the insurance company fails.

It’s not relevant to pensions.
nS&I is £50k for premium bonds.
The £85k protection relates to different banking institutions. Be aware though that some banks are linked together. So if close to amount then split across different banking insututions.

NS&I has investments apart from premium bonds and some of those are far higher than £85k - for income bonds it is £1 million, for example.