Now that Revolut is suggesting we use it as our primary bank account...

Hi, apologies if I’m being obtuse, but the thread is still a tad unclear to me. I understand the FSCS coverage for monies held at Lloyds or Barclays and that e-wallets are not covered, but I don’t understand what is held by whom and when.
Can you confirm/correct the following scenario:

  1. I transfer 500 GBP funds from my bank account- outcome: money held in client ring fenced account, say Lloyds (and protected)
  2. I buy 250 EUR and 200 BTC- outcome: residual 50 GBP at Lloyds (protected), 250 EUR and 200 BTC in e-wallet (unprotected)… (All GBP equivalent values) .
  3. I sell 250 EUR - outcome: 300 GBP at Lloyds (protected), 200 BTC in e-wallet (unprotected)
    … Or are all funds held in the e-wallet once transactions have been made and need to be withdrawn to be protected?
    Thanks in advance
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