Are savings safe in current global economic times?

[GroundZero]

Say you had a large amount of savings in bank accounts (ISAs), for the purpose of wanting to use them at short notice to buy a house (as and when that suitable house appears on the market), what would be your preferred option to store such savings ?

Place the savings in to gold?
Keep the savings in the ISAs (making sure you hold no more than £85k in one banking group?


I am aware that once I put money in to a bank account that I no longer directly own that money, instead I become a creditor of the bank. And that money only returns to me if the bank is able to service that request. If the bank were to fail then I 100% have to rely on the FSCS which guarantees up to £85k.

But say if the $hyte hit the fan in a big way, how reliable is that FSCS guarantee?

[Mogul]

The FSCS scheme covers you up to £1m on a temp basis.

You have to believe in something…

[Andeh1]

... Also keen to know!

[JapanRed]

Isn’t the FSCS backed by UK govt? If so it’s as safe as anything possibly can be.

[Vincent-Vega]

JapanRed said:

Isn’t the FSCS backed by UK govt? If so it’s as safe as anything possibly can be.

Not as safe as having the cash or gold actually in a safe.

Ask the Cypriots how safe it is.

[LooneyTunes]

NS&I if you’re worried about bank risk.

Instant/near instant access options available up to £3m iirc, 100% government backed.

[Bowser87]

Lots of active savings platforms around now that will manage a spread across FSCS licenses to ensure balances are always insured.

[Andeh1]

Is it a moot point though? Are any of them at risk with current events?

[Bowser87]

How is it moot. If they go bust the FCSC is there to cover you and payout in under 2 weeks. Most banks at the moment have plenty of capital and a good amount of liquidity. Maybe if house prices start to drop by +40% things might start to get interesting.

[LooneyTunes]

Bowser87 said:

Lots of active savings platforms around now that will manage a spread across FSCS licenses to ensure balances are always insured.

Even whilst in their holding accounts?