I am looking to invest £500K in some high interest bonds and am looking at spreading the risk. I have just put some in a bond with Bham Midshires and have received info on another bond from Bank of Scotland. When I read the small print, it appears BM is part of Bank of Scotland. I believe its the same with Cahoot and Abbey. If you have money invested with both institutions, would they count as one bank in the event of a problem, ie would you only be covered up to 35K across both accounts?