I’ve always tried to play it safe, the biggest Spanish bank in Spain for my every day spending, while keeping two separate UK accounts , RBS and the Abbey. I now find that they’re all owned by the same bank . . .
And as such you are only covered up to 50K (or whatever) for all three accounts instead of 50K per account.
As I understand it, private funds are covered by indemnity, but company funds are not. So although Santander give good interest rates compared to UK banks, could it be like the Icelandic Bank and be vulnerable? The amount of money I am talking about is considerably higher than £50,000.
Is it company funds? In that case you would become a creditor and be repaid a %age from which ever bank went bust – around 80% in the KSFIoM case I believe, it takes years though.
What ever; spread it around and spread the risk. Apparently, National Savings are are well protected.