Aisha’s home sale: temporary high balance protection

Disclaimer: This story is fictional and created for illustrative purposes only. It does not describe real people or events.

I never really thought I’d have to worry about having a large sum of money in my account – but after recently selling my home, I suddenly had £250,000 sitting in my bank account while I was waiting to complete on my next move. 

At first, I was a little bit nervous about having that amount of money in my account. I already knew from seeing the FSCS Protected badge on my mobile banking app that FSCS protects savings and current accounts with UK-authorised banks, building societies and credit unions up to £120,000 per eligible person, per banking licence – but what would happen to the remaining £130,000 if my bank went out of business?  

Thankfully, I visited the FSCS website, and I found out that because the money came from the sale of my home, it qualifies as a ‘temporary high balance’ – meaning my money was protected up to £1.4 million for up to six months while I planned my next move. It was still important to act quickly and transfer the money before that six months was up, but it was helpful to know my money was fully protected for that extended period of time.  

FSCS also protects temporary high balances that occur as a result of other qualifying major life events, such as inheritance, redundancy or divorce – so it’s always worth double checking that your money is FSCS protected if you find yourself in a similar position. 

Find out what qualifies as a temporary high balance