£50k bank guarantees

[tamborine]

Does that mean it's folly to put more into one bank ?

[dzug2]

Folly would be exaggerating it

A slight risk that some would prefer not to take is a better way of describing it

[Hymie]

Yes, if you are seriously rich and have say £20 million and it is all with one bank, should that bank go bust, you now have £50k.

I recall at the time of the Northern Rock debacle, a couple had sold their house and the money (circa £200k) had been paid into Northern Rock and was due to be paid out to purchase the house they were buying. At the time the bank guarantee was only £30k, and so they were looking at loosing over £150K due to bad timing of their house move (and incompetent management at Northern Rock).

[factor-fiction]

I very much doubt the govenment would ever stand by and see savers lose money if a major bank went belly up. But for peace of mind, unless the interest rates in your bank are really attractive, why take the chance

[Hopkirk]

Factor, if there was an even bigger financial explosion than last time, the government may not be able to afford to do anything other than stand by and watch.

[factor-fiction]

I agree Hopkirk. When I have answered similar questions before I have added that if the government couldn't afford a bail out then I don't think anyone's money would be safe.

[dzug2]

In that sort of scenario you might well get your £50K and blow it all on a cheese sandwich.

[cassa333]

Some banks are linked so even if you have them in different ones you may only get £50k back in total.