Just wondering if I should be keeping all my money in banks at the moment? My money is currently split between my Monzo account and my Marcus savings account by Goldman Sachs. I’m hesitant to keep it in there in the event that we go into recession if the situation gets worse with COVID-19 (which is very likely), is there any point withdrawing the cash or am I missing better off trusting FSCS?
Where else would you keep it? Under mattress? Stocks?
I was going to keep it cash in hand until the lockdown period has ended and things start to stabilise, at which point I’d put it back in the bank. Just wondering if this is the best approach?
It’s no less safe than before.
You’re protected up to £85,000 by the FSCS should anything go wrong.
Most of not all banks participate in this gov scheme.
Can I ask why? I’m sure I’m just wilfully ignorant but I can’t see any reason why this would be advisable?
worth thinking what happens if you’re burgled, or suffer a house fire
I was aware of this but my concern was if a recession happens or if worst came to worst some banks collapsed wouldn’t it take months or longer to get any money back from FSCS if everyone is in the same situation?
because if the bank goes bust FSCS picks up the tab, anything else that could go wrong falls on the bank. The only precaution I’d advise is to have money in more than one bank (just incase one freezes your account due to money laundering or fraud suspicsions, or has a major outage)
I had thought of that and obviously it’s off putting, it looks like the consensus is to keep it in the bank for now so I guess that’s what I’ll do, probably just overthinking things too much with all the spare time I have now
You don’t see why it would be advisable to keep money in your bank? It is protected. Cash under your mattress is not. It is really that simple.
Since 2011, the FSCS has had a target of having paid the majority of claimants within seven working days, and everyone by day 20. The compensation will be paid out automatically, so you won’t need to make a claim.
This is wise I have two accounts and keep a few £ in the spare account just in case. Although I never use it.
I know some people have a credit card for this situation, or another account with a small overdraft on it.
It’s also handy if the one bank has a blip with card payments you can quickly do a bank transfer online and you’re good to go.
If you could kindly put it in a large brown envelope under your bed and then provide your location so we can check you’re ok every so often that would be great
If Goldman goes bust and FSCS can’t pay out then the scenario described would mean the cash under your bed is worthless because society has collapsed and there’s no longer a government or functioning economy so money would be worthless.
The chances of that happening are virtually zero. The chances of Goldman disappearing because of a virus are virtually zero, and the chances of FSCS not being able to pay out because of a virus collapsing Goldman (already improbably) are virtually zero.
The scenario frankly isn’t even worth the amount of words I used in this post. It’s so unlikely you’d have a better chance of wining the lottery then being hit by lighting mid flight in a plane and the plane crashing on an island and you surviving and playing out the movie castaway to come back and realise the lottery invested your money and managed to triple it and now your a billionaire.
Just for comparison
Haha, into the savings account it goes again. I appreciate the response as well as everyone else’s, just feeling paranoid about it all but clearly it’s unfounded.
You have to also remember banks are in a lot better financial position than in 2008. Banks are regularly tested now whether they would collapse under different financial pressures including the collapse of a major bank.
Latest Stress Test:
How did you get the cash out from Marcus? Do you order it to a bank somehow? How do you get £85k cash home without sweating?
Your paranoia is in the wrong place. You should be paranoid about things like cleanliness, staying inside, avoiding people, getting your family to do the same etc.
You’d already withdrawn it?