Depositing large sums into Bank accounts

[Mats]

Hi,

I have a rather large sum of money coming from different places to deposit into a bank. I know the government protection is 80K per bank. It's a hassle depositing money into different bank accounts when I will need to get at it in order to put the money to work on a foreign house purchase. However I think the money will probably sit in the bank for at least 3 months. What is the standard practice? Is it a common scenario? Perhaps risky putting the funds into one account or is it deemed a big risk if the account is with one of the big 5? It is a hassle splitting it over multiple accounts and then transferring to a foreign bank account currency as I will need to pay various charges for transfers. Perhaps those charges are what I will have to pay for the insurance of the government protection?

What do the powerfully built types think?

Cheers

[trickywoo]

£80k guarantee is just a confidence booster the reality is that the government isn't going to let any of the big banks go down.

If one goes they'll all go and it'll be the end of life as we know it.

[Sir Bagalot]

I would split it over high interest paying accounts. With online banking it's now piss easy to transfer money between accounts. 3 months interest on a large amount will add up quite quickly. For example 2% on £250K over 3 months is £1,250 before tax.

I would then use the likes of transfermate.com to move it abroad when needed.

[Mats]

Thank you chaps. Much appreciated...

[2222]

Sir Bagalot said:

I would split it over high interest paying accounts. With online banking it's now piss easy to transfer money between accounts. 3 months interest on a large amount will add up quite quickly. For example 2% on £250K over 3 months is £1,250 before tax.

I would then use the likes of transfermate.com to move it abroad when needed.

So where can you get 8% PA interest rate on my savings?

[Ozzie Osmond]

2222 said:

Sir Bagalot said:

I would split it over high interest paying accounts. For example 2% on £250K over 3 months is £1,250 before tax.

So where can you get 8% PA interest rate on my savings?

Where can I get 2% a year on my savings?

Had a letter today saying my existing 2% will drop to 1% next week!

[GrizzlyBear]

Ozzie Osmond said:

2222 said:

Sir Bagalot said:

I would split it over high interest paying accounts. For example 2% on £250K over 3 months is £1,250 before tax.

So where can you get 8% PA interest rate on my savings?

Where can I get 2% a year on my savings?

Had a letter today saying my existing 2% will drop to 1% next week!

Getting annoyed at these savings rates, and all because of the governments funding for lending scheme.

[Esseesse]

Mats said:

I know the government protection is 80K per bank.

Remember, if a bank has major problems there's a good chance that you'll end up bailing it in, rather than the taxpayer bailing it out. If this is the case then depositors will owe the government for propping up their bank. Under new rules if you owe HMRC anything they can take it straight from your account, and the protection in this scenario is only £5k.