Question

Is there a limit to the amount a council can hold in anyone bank account?

Answer 1

There is no legal limit but councils should be aware of the FSCS limit of £85000 and decide where to bank accordingly.  My council has savings accounts with a number of banks to spread the risk

Comments

Thanks for confirming the limit, that is a great help.

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Just to add, the limit is set per financial group, not per bank or per account! As an example, HSBC owns First Direct, so you should only have up to £85,000 in an account with only one of these businesses. HSBC and Lloyds though are completely separate, so you can have up to £85,000 in an account from each. Definitely worth spending some time to look up "who owns who".

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Thank you for this a valid point, thank fully ours are separate.