Bank Security or?

[Dod101]

I am thinking of moving but in the present climate for the property market I am being advised that if I can be a cash buyer or am 'proceedable' in estate agent speak that would put me in a very strong position. I know this has been discussed before, but selling first would probably give me something well in excess of £500,000 which I would be unhappy to leave in my bank for any length of time. What would be the best way to secure it as I do not want to be the subject of a bank run. Could be sitting there for anything from a few days to several weeks. I prefer to owe banks money than the other way round.

Dod

[Lootman]

NS&I products, like Income Bonds currently paying 2.8% I believe, and you can hold up to a million in them, with instant access. Your counterparty there is HM Government, so presumably safe enough?

[mc2fool]

The FSCS does cover "temporary high balances in your bank account, building society account or credit union account of up to £1million for 6 months." https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

But, of course, even so it'll be delays and a faff if the deposit taker fails and you have to claim. I agree that NS&I is the best sleep-well-at-night option....

[yorkshirelad1]

NS&I products, like Income Bonds currently paying 2.8% I believe, and you can hold up to a million in them, with instant access. Your counterparty there is HM Government, so presumably safe enough?

I have a memory of a figure of £1m at NS&I but I couldn't find a source for that, but the info at https://www.nsandi.com/get-to-know-us/security/protect-your-money implies there is no limit.

[mc2fool]

NS&I products, like Income Bonds currently paying 2.8% I believe, and you can hold up to a million in them, with instant access. Your counterparty there is HM Government, so presumably safe enough?

I have a memory of a figure of £1m at NS&I but I couldn't find a source for that, but the info at https://www.nsandi.com/get-to-know-us/security/protect-your-money implies there is no limit.

Indeed, but there is a practical limit in that the amount you can put into each of their accounts is limited. For the Income Bonds it's £1m, for the Direct Saver it's £2m, for Premium Bonds it's £50k etc ....

https://www.nsandi.com/products

(Toting up how much you could put into NS&I in total is left as an exercise for the reader )

[yorkshirelad1]

Indeed, but there is a practical limit in that the amount you can put into each of their accounts is limited. For the Income Bonds it's £1m, for the Direct Saver it's £2m, for Premium Bonds it's £50k etc ....
(Toting up how much you could put into NS&I in total is left as an exercise for the reader )

That's an interesting angle on it, but very valid!