In a recent podcast, Martin Lewis addressed a listener's concern about managing funds from an impending house sale that would deposit a significant amount into their UK bank account. The individual, worried about exceeding the compensation limits set by the Financial Services Compensation Scheme (FSCS), sought advice on how to best handle this amount when they already held a substantial balance in their current account.

Lewis clarified that the FSCS protects up to £85,000 per individual per financial institution, meaning that any amount above this might be at risk if the bank were to fail. He emphasized the importance of spreading deposits across different banks or accounts to ensure that any excess funds remain secure. This advice comes at a crucial time when individuals may be facing large transactions, particularly in the volatile housing market.

The guidance provided by Lewis is particularly relevant for those who may not be familiar with banking regulations or the implications of holding large sums in a single account. His recommendations could help individuals avoid potential losses and make more informed decisions regarding their savings and investments as they navigate financial transactions involving significant amounts of money.