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What’s the maximum amount of money you can safely have in a bank account?

I’ve been told not to put all my eggs in one basket so to speak, as a very good friend of mine mentioned that if your money goes over a set amount and the very worst happened then the bank would not have to pay you back. Would you be so kind as to tell me exactly what I need to know? is it true you’re only covered for a set amount? should I be spreading out my money so as not to go over this threshold?

Appreciate your help, thanks.

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19 Responses to “What’s the maximum amount of money you can safely have in a bank account?”

  1. NotEckyBoy said :

    I find that to be very strange advice.

    Banks would not stay in business very long if this were true.

    If you have got huge amounts of money though, it does make sense to split it between different banks. The only reason being, you should never allow the manager of any financial institution to know EVERYTHING about how much money you have.

  2. technodai said :

    That’s just not true. The only reason you might have for concern is if you have all your savings with one bank and then that bank crashes or becomes bankrupt.

    Of course, in the UK even if that happens the government will guarantee your savings (Northern Rock)

  3. RICK said :

    Personal accounts are federally insured for up to $100,000. This includes checking and saving accounts of a personal, not business, classification. This is in the U.S. and every bank i’ve been in had a little plaque by the tellers that states this.

  4. The silent pen said :

    You are protected nomatter where you put it.

  5. emily_gaspar said :

    If you are talking about live accounts, then I wouldn’t advise keeping too much money in those – but savings accounts are different, and I feel they are safer (although I might be wrong).

  6. honeysuckle said :

    Check out Martin Lewis Website. Lots of information on saving money and keeping it safe. I’m sure he’ll have the correct info for you

  7. Steve said :

    If its just a bank account, then you can have up to $100,000 in there. That is the limit that the FDIC will insure if your bank ever goes out of business.

    I’m not sure if the $100,000 is per account at the bank or $100,000 per bank regardless of how many accounts that you have. I, vaguely, remember hearing about some change in the FDIC’s policies about 10 years ago.

    However, if you ever invest your money through a brokerage house or do it yourself. You should diversify your holdings so you don’t lose everything. Think of the people that had all of their retirement money in stocks like Enron and MCI when they went under.

  8. Richard B said :

    FDIC covers up to $100,000. So if the bank collapses, the federal government will only pay you $100,000.

  9. janey_bei said :

    It’s a good strategy to spread money on different banks. Entrust your money to reputable banks only. I don’t know other country’s practice on banking but here in my country deposits are insured up to 100,000 only which means in the event that the bank gets bankrupt, that amount is the guaranteed amount that the bank can give you immediately while the rest of your savings will be returned after all the bank’s assets are disposed and liabilities cleared.

  10. mactheboat said :

    Sorry folks, but the good friend is quite right ! I think the first £10,000 is guarenteed in full, then up to £35,000 you get a percentage and after that -nowt ! That is per bank,not account,so you can`t cover it by having multiple accounts with the same bank. Makes you wonder whose money if is,dosn`t it.

  11. happylilpossom said :

    macthebo’s got the answer correct for the UK.
    You can pop into any bank or building society and see for yourself if you ask for a leaflet on ‘The Banking Code’.

    Wish I had to worry about such things! Good on you for having savings.

  12. mommatobe said :

    Your money is only insured up to $100,000 per bank. So I would advise not having more than that in one bank.

  13. Eddy T said :

    This is a good question. As a banker,I can assure that your concern that banks will not pay you back the full amount of money which you had deposited with them, is not correct. Such a situation do not exist in real life or can only happen when a bank goes bankrupt. Even Northern Rock did not went bankrupt, the Bank of England supplied it with liquidity to pay in full all its depositors who wanted their money back in full.
    Bank of England also save it by nationalised it. But its shareholders suffered huge losses in the value of their investment.
    In the history of the banking business, there was never an occasion where a bank had gone bankrupt. The worst scenario is the Northern Rock situation. Or other stronger banks will take over the troubled bank at a discount. And with the consent of the Central Bank.
    Banks are custodian of people’s money and will always pay back the people’s money with interest and on demand. Banking is an honourable and risky business it need also to make profit for its shareholders. As it pays interests for your deposits, it must also make profit for its shareholders who had supplied it with money as capital to do its banking business.
    Not putting all your eggs in one basket is a good investment strategy, but not necessary so for banks. They are a country’s essential banking business and they help the economy and a country to prosper.

  14. STEVEN F said :

    Regardless of country, you only lose bank deposits if the bank fails. If it does, the amount of government insurance varies by country. In any case, if you are at or near the limit, you have WAY to much money in bank accounts. At least part of that money should be invested, not stashed in a bank.

  15. DIXIE said :

    In the UK there’s a guarantee but only up to £35k except Northern Rock where its 100%

    BUT if you have say 3 x £35k you need to put the money in 3 separate unconnected banks and they make it extremely difficult to find out which are connected

    A common FSA Reg number is proof but they can have different ones and still be connected

    Dont trust any one of them but do trust every one of them to rip you off one way or another

  16. Helper999 said :

    From the following site below the current situation in the UK is…

    “The first £35,000 you have saved per financial institution is protected.”

    That is £35,000 per institution but they have to be separate eg…

    Royal Bank of Scotland and Nat West are connected so if you have £35,000 in a Nat West account and £35,000 in a Royal Bank of Scotland account you are only covered for the initial £35,000.

    Hope this helps.

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