Questions about town and parish councils

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

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0 votes
by (220 points)

1 Answer

+2 votes
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
by (25.1k points)
Thanks for confirming the limit, that is a great help.
by (220 points)
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".
by (1.0k points)
Thank you for this a valid point, thank fully ours are separate.
by (220 points)

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