Martin Lewis tells Brits scrambling to empty bank accounts why it’s a bad idea
Martin Lewis has warned people emptying their bank accounts to hold-off because their money is still safer inside, despite the coronavirus pandemic.
Due to Covid-19, Martin has been doing his usual slot on ITV’s Good Morning Britain via a video link from his home in north-west London.
Kate Garraway, still in the studio, tells him that people have been phoning in to say they have heard of people "emptying their bank accounts" and hoarding cash in their homes.
Looking concerned, Martin replies: "Things are certainly safer in your bank than they are being held in your home where only home insurance is protecting you."
The money guru reckons you "probably only get up to £1,000 of cash protection" included in your home insurance.
In an attempt to reassure worried viewers, he adds: "The rules in the UK are simple. In a UK-regulated savings account, which is almost every single one that anyone has ever heard of, you are protected up to £85,000 per person, per financial institution.
“And that is backed up by the government who I would be very surprised to see let a bank go bust at the moment because it is so crucial. Even if it did they would probably move the savings pot."
Martin then throws a spanner in the works and says: "Now if the state went bust, well we’d all have a bigger problem than our savings."
But doubling down on his calming advice, he says: "I would suggest, up to £85,000 in any financial institution, you are safe yes."
Martin recently explained how a mortgage freeze actually works if you are struggling financially due to coronavirus and need a break from repayments.
The finance wizard was horrified when he heard people have been simply cancelling direct debits on their mortgage – which can land you in serious trouble.
- Martin Lewis
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