Don't quote me on this but if you have been paying your stamp ( NI ) for a few years , you will get contribution based JSA ( savings don't matter ).
If you haven't paid enough stamp then it will be income-based JSA ( If you have over £7000 ? you benefits will be reduced ).
But to answer your question factually , hiding your money somewhere else is benefit fraud so yes it is illegal.
If even you went on a spending spree and spunked it all on ice-cream and coffee it still could be classed as Deliberate Deprivation of Capital.
Interestingly enough if you owned a house instead of money your benefits would not be affected
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