Where to put large savings amounts in the UK. We compare FSCS protection limits, rates for large deposits, and strategies for maximising returns safely.
·5 min read
Got a large sum to save? Here’s how to get the best rates while keeping your money protected.
The £85,000 Problem
FSCS Protection Limits
Protection
Amount
Per person, per banking group
£85,000
Joint accounts
£170,000 (£85k each)
Temporary high balance
Up to £1 million (special circumstances)
If you have £200,000 in one bank and it fails, you’d only receive £85,000 back.
Banking Groups (Important!)
What Looks Like Multiple Banks
Reality
Halifax and Lloyds
Same group (one £85k limit)
NatWest and RBS
Same group
HSBC and First Direct
Same group
Santander
Separate
Nationwide
Separate
Marcus by Goldman Sachs
Separate
Check before spreading — different brands ≠ different protection.
Banking Groups Quick Reference
Group
Brands Share £85k
Lloyds Banking Group
Lloyds, Halifax, Bank of Scotland, Scottish Widows
NatWest Group
NatWest, RBS, Ulster Bank
HSBC UK
HSBC, First Direct, M&S Bank
Barclays
Barclays
Santander UK
Santander
Nationwide
Nationwide
Virgin Money
Virgin Money, Clydesdale, Yorkshire Bank
Strategy for Large Deposits
Spreading by Banking Group
Total Amount
Strategy
£85,000 or less
One provider is fine
£85,001-170,000
Two banking groups
£170,001-255,000
Three banking groups
£255,001-340,000
Four banking groups
£340,000+
Continue pattern or use wealth manager
Example: £250,000 to Save
Bank/Group
Amount
FSCS Protected
Nationwide
£85,000
✅ Full
Marcus (Goldman Sachs)
£85,000
✅ Full
Santander
£80,000
✅ Full
Total
£250,000
100% protected
Best Accounts for Large Balances
Easy Access (No Limit Issues)
Account
Rate
Max Balance
FSCS
Marcus
Competitive
No stated max
✅
Santander Easy Access
Good
Check current
✅
Virgin Money Savings
Good
£1m+
✅
Metro Bank Instant Saver
Decent
£250k+
✅
Fixed Rate (Large Deposits)
Provider
Term
Rate
Max
Building societies
Various
Competitive
Often £500k+
Fixed rate bonds
Various
Best rates
Usually £85k
NS&I
Various
Lower
No limit
Notice Accounts
Notice Period
Typical Rate Boost
Good For
30 days
Slight
Emergency buffer
60 days
Moderate
Medium-term
90 days
Better
Funds not needed soon
120+ days
Best
Long-term savings
Premium Bonds
Why Consider Premium Bonds
Feature
Details
Max holding
£50,000 per person
Prize rate
Variable (check current)
Protection
100% government backed (not FSCS — Treasury)
Access
Easy access (few days)
Tax
Completely tax-free
Effective rate: Variable — depends on luck. Average return is lower than best savings accounts, but prizes are tax-free.
Best For
Suited To
Why
Higher/additional rate taxpayers
Tax-free advantage
Part of diversified approach
Up to £50k here
Risk-averse
Government guaranteed
NS&I (National Savings)
100% Government Backed
Product
Rate
Max
Access
Premium Bonds
Prize draw
£50,000
Easy
Direct Saver
Variable
£2 million
Easy
Income Bonds
Variable
£1 million
Easy
Guaranteed Growth Bonds
Fixed
£10,000
Fixed term
NS&I rates are often lower than best buys, but unlimited government protection may justify this for very large sums.
Building Societies
Building societies often suit larger deposits:
Society
Why Consider
Nationwide
Large, well-rated accounts
Yorkshire BS
Competitive rates
Coventry BS
Good easy-access options
Skipton BS
Range of products
Each building society is separately protected.
Strategies by Amount
£100,000-250,000
Approach
Example
Split across 2-3 groups
£85k Nationwide, £85k Marcus, remainder elsewhere
Use NS&I for some
£50k Premium Bonds + £50k Direct Saver
Mix easy access + fixed
Some accessible, some locked for better rates
£250,000-500,000
Approach
Example
4-6 banking groups
Systematic spreading
Building societies
Often accept larger deposits
NS&I
Unlimited protection
Consider Wealth Manager
Handles spreading for you
£500,000+
Approach
Notes
Wealth manager
Manages FSCS spreading
NS&I heavily
Unlimited government protection
Multiple building societies
Many separate protections
Consider ISAs
£20k/year tax-free (long-term)
Temporary high balance protection
If proceeds from house sale etc.
Temporary High Balance Protection
What It Covers
If you suddenly have a large sum due to specific circumstances, you may get up to £1 million FSCS protection for 6 months:
Qualifying Event
Protection Period
House sale proceeds
6 months
Inheritance/estate distribution
6 months
Divorce/separation settlement
6 months
Redundancy payment
6 months
Insurance payout
6 months
Personal injury compensation
6 months
You must be able to prove the source if the bank fails.
Cash ISAs for Large Savers
Feature
Details
Annual allowance
£20,000
Lifetime allowance
Unlimited
Interest
Tax-free
Best rates
Sometimes match or beat taxable accounts
For long-term large saving, maximising ISA allowance yearly builds a tax-free pot.
ISA Strategy for Large Sums
Year
Action
Running Tax-Free Total
Year 1
£20k into ISA, rest in savings
£20k ISA + £230k taxable
Year 2
£20k more into ISA
£40k ISA + £210k taxable
Year 5
Continue
£100k+ ISA
Tax Considerations
Personal Savings Allowance
Tax Band
Tax-Free Savings Interest
Basic rate (20%)
£1,000
Higher rate (40%)
£500
Additional rate (45%)
£0
Do the Maths
Amount
Rate
Annual Interest
PSA Impact
£100,000
5%
£5,000
Exceeds PSA
£200,000
5%
£10,000
Well exceeds
Higher/additional rate taxpayers with large cash holdings should prioritise:
ISAs
Premium Bonds (tax-free)
NS&I
Consider spouse’s allowances
Wealth Managers & Cash Platforms
When to Consider
Amount
DIY Feasible?
Under £500k
Yes — spread yourself
£500k-1m
DIY possible but time-consuming
Over £1m
Wealth manager adds convenience
Cash Platforms
Services like:
Flagstone (wealth managers)
Raisin UK (savings marketplace)
Hargreaves Lansdown Active Savings
These spread your money across multiple banks via one interface.