Moving Money From Bank To Home Safe

[Piggybank]

Hi all, I'm in a bit of a dilemma whether or not to take 5k from my low interest rate bank account and keep it in my home safe.

With post Brexit is getting closer, I'm thinking some money in the hand would be better if the scenario is difficult for months before it settles.

I would appreciate all your thoughts in this option.  Thanks

[Pete]

If you use a UK bank you have absolute protection of your money and government compensation in full even if the bank goes bust.
The cover is £85k or in this region per person.
Not many insurance companies would cover as much as £5k in cash stored at home even if in a safe.
Proving loss would be interesting so my advice is keep your cash in the bank.
Why does Brexit have anything to do with this ?
All the nonsense about shortages of food, medicines and the shut down of the economy is utter bullish!t.
Might be worth transferring your cash to an English based bank if the SNP ever succeeds in making Scotland independent though.
That would definitely make me worry more than the shenanigans surrounding Brexit.

[Xander]

51 minutes ago, Piggybank said:

Hi all, I'm in a bit of a dilemma whether or not to take 5k from my low interest rate bank account and keep it in my home safe.

With post Brexit is getting closer, I'm thinking some money in the hand would be better if the scenario is difficult for months before it settles.

I would appreciate all your thoughts in this option.  Thanks

If you take it home you will only worry about a break-in when you're out, or worse, when you're home. I would leave it in the bank.  Where do you live again?😉

[Cornishfarmer]

I’d take a couple thousand out just to cover, nobody knows what will happen.    I’d regather have just in case.    Same with food I’m buying a bit more to store just in case.   Not a preper just common sense 

[Scuzzle]

44 minutes ago, Pete said:

If you use a UK bank you have absolute protection of your money and government compensation in full even if the bank goes bust.
The cover is £85k or in this region per person.
Not many insurance companies would cover as much as £5k in cash stored at home even if in a safe.
Proving loss would be interesting so my advice is keep your cash in the bank.
Why does Brexit have anything to do with this ?
All the nonsense about shortages of food, medicines and the shut down of the economy is utter bullish!t.
Might be worth transferring your cash to an English based bank if the SNP ever succeeds in making Scotland independent though.
That would definitely make me worry more than the shenanigans surrounding Brexit.

Is that £85k not just a confidence booster though, if there was a banking crisis that involved enough banks would you really see it?

[fiveshotdon]

Leave it in the bank mate or buy some gold sovereigns.

[silverdocket]

 Once upon a time along long time ago England wasn't  part of Europe,

 Nobody died  from starvation and banks worked perfectly fine.

 It will take a few weeks to adjust for sure I just wish Ireland was following suit.

 Take out enough cash for a month .

[fiveshotdon]

What worries you about the deadline to withdraw cash?

[HelpingHands]

If you do, don't forget that the £20 notes will be changing to plastic in 2020

[Martlet]

4 hours ago, Scuzzle said:

Is that £85k not just a confidence booster though, if there was a banking crisis that involved enough banks would you really see it?

Yes, if they didnt they'd have real crisis on their hands and as recovery is dependent on confidence, the system would be shot.  They dont want to see millions of small savers, pensioners, wiped out and then have to support them.  

Keeping some cash on hand in case ATM run out for a day is a good idea.  Brexit isnt going stop transfers, so best left in the bank. 

[Pampfan]

Probably a good idea to keep some cash on hand for an extreme emergency - terrible hit the fan situation- 5000 pounds in 100 pound notes is a small envelop of money which can be hid in very clever places - behind moldings, in the walls, inside of hollow doors, inside of the wife’s shoe room (scratch the last one-lol) etc. There are a lot of theory’s on burgalary protection and starategy - like leaving a stash of hundreds Readily found - so the burglar will grab that and leave your house thinking he got a quick score. 

if you do decide to keep the cash at home - do put it in a fireproof envelop.

[HelpingHands]

There are only £100 notes in Scotland.  I think it's because they are too tight to break a large note.

If there was a shortage of cash you'd be better having a pile of £5 notes and coins.   

[ChrisSilver]

2 hours ago, Pampfan said:

if you do decide to keep the cash at home - do put it in a fireproof envelop.

+1

A fireproof safe would be good, but with a 60min instead of just a 30min rating.

[Xander]

2 hours ago, HelpingHands said:

There are only £100 notes in Scotland.  I think it's because they are too tight to break a large note.

I heard a guy in Yorkshire got arrested for breaking into a £1...they let him off as it was the first time he had ever done it.🤣

[gkoogk]

Theres not enough money in UK banks to promise everyone 85k... 70 million population..say 50 million accounts..equals  4350000000000..43 trillion

 

What about people who have sold houses or wealthy people who have 5..6 or even 7 accounts with 85k in... that would bring that 50 million figure right down

[Oldun]

https://www.fdic.gov/about/srac/2012/gsifi.pdf

[Martlet]

9 hours ago, gkoogk said:

Theres not enough money in UK banks to promise everyone 85k... 70 million population..say 50 million accounts..equals  4350000000000..43 trillion

That would only be a problem if anywhere near all the population have 85k.  

[Piggybank]

Many thanks to all your replies. I am going to take out 2 grand and buy more gold, As @pete said I would be very worried if Nicola Sturgeon (poisoned dwarf) and her cronies managed to get a second referendum  My gut feeling is that she is going to lose a lot of votes in the next election mainly because she wants Independence for the UK but still wants to be in the EU.

Just doesn't make any sense to me and a lot of Scots, most of these are die hard Nationalist. On a personal note I voted to remain in the UK

[Bumble]

The £85k deposit guarantee is designed to encourage people not to make a run on the bank if they get worried. In practice, the government could only afford to cover the deposits within one medium sized bank. Anything bigger and the money would have to be obtained through expansion of government debt or money printing. Would the government cover all the deposits in the event of a systemic banking collapse? Yes, but it would take quite a while to sort out, and the debt and money printing involved would eventually be inflationary.

It is better to spread deposits around. More than one bank. Maybe something in a building society or a credit union. Maybe an account offshore. Maybe some foreign currency. Maybe a gold deposit. Maybe even some crypto when the price gets cheap enough. Having enough cash for a month is a good idea.

[Cornishfarmer]

Is it a government thing or eu?     Seem to remember a few years ago the amount changed because for currency exchange rates 

[HelpingHands]

46 minutes ago, Cornishfarmer said:

Is it a government thing or eu?     Seem to remember a few years ago the amount changed because for currency exchange rates 

Ive not checked but I think it's related to the Bank of England but the protection value moves to match 100,000 euros.

I don't know how long you'd wait to be paid out.

Remember the bank run on Northern Rock even though people were reminded on TV about the deposit protection scheme.    

Cyprus accounts had a haircut.

Money in the bank is not your money.  You've lent it to them.  That's why they pay you interest (and very little interest at that).

[HelpingHands]

This says there is a link with European protection when the protection level increased.

https://www.bbc.co.uk/news/business-41226937

 

[TopHatsTales]

Can anyone advise what the cover is for a business account?

My accountant says there is too much cash in the bank. Even splitting it between banks would leave over £85k per bank and not be operationally easy.

One point, for clarity, if some are unaware... The £85k is per banking license, not bank. If you had £85k in Lloyds and £85k in TSB, as they are both Lloyds banking group, that is one lot of £85k cover, not £170k of cover.

The thought of a bail in and losing everything is not great. 

Does the £85k even cover business accounts?

[Oldun]

Says your money is protected up to 85K but what if there is a bail in  ? Does it cover that ?

[flim]

you need some vodka, bit of food just in case the snow covered the roads, some cash on your wallet

the rest that you need not can be in gold, oh you already have them

what is to worry ?