How to spread cash deposits to protect them in the event of a bank collapse etc?

[Thefabulousfeminist]

I know you are only protected up to the threshold of £32k or something in the event of a bank going under so what's the best thing to do with more cash than this? Is it wise to deposit it at several banks or is there an alternative? Thank you.

Actually, you are covered for £85,000, and (as usual on these topics) Money Saving Expert covers everything you need to know: www.moneysavingexpert.com/savings/safe-savings

Money saving expert all the way. It's per banking group not per bank, so you need to check which groups you're with not which brands - but MSE will explain all you need to know.

Take care if you're involved with peer to peer lending or anything as these aren't protected.

Thank you very much both of you

Sounds a bit pedantic but it's actually per banking license so you can have money with rbs and NatWest ( both owned by RBS) or lloyds and Halifax ( both owned by lloyds banking group) and you would be protected up to 85000 for each or RBS, NatWest, Lloyds and Halifax. However as Halifax and Bank of Scotland operated under the same banking license you would only be protected up to £85k across both.

National Savings & Investments (NS&I) is government-backed and therefore all money you put on deposit with them is secure. Interest rate on Deposit Account is currently 0.7% so not market leading but if securry is of utmost importance to you and you want to keep the administration simple by just using one product provider then it's a good option to consider.

*security

In addition to being able to deposit under different banking licenses there is also temporary high balances as long as you apply through FSCS

Wow I wish this was a problem I had

Op might have sold a house, and if so there are temporary high balance arrangements.

Don't leave it on deposit too long. Even if you believe that inflation is 2% you can't get much more than 1% on larger sums.

cazzyg thank you - I didn't know that!

Nobody has lost money in a UK bank since the early 70's

The co op will go bust in the next few weeks.
Another bank will take over their current account service within hours
(as was the case when ING went bust)

the FSCS guarantee is an EU thing that will vanish after brexit
and its never been called upon in the UK yet !