Whats with all the bank panic madness?

Paul_Herring

We all want to run round like chickens with their heads cut-off screaming "We're all doomed!"

You a writer for the DMGT?

Sapphire

a7man wrote: »

I come on here and read endless threads about fear of banks collapsing and spreading £35k into numerous accounts, its hilarious. Especially when people worry about their accounts with the 4 biggest banks in the country...relax people...

It's not only here. I've been in both Northern Rock and Chelsea during the last couple of weeks, and in both places there was person after person opening a savings account of one kind or another. Both places were extremely busy.

The impression one gets is that people may be running for cover to places that they consider relatively safe, and away from the big outfits that have been deeply involved in sub-prime and other forms of lending (e.g. credit card lending to people who will clearly be unable to pay tens of thousands of pounds back, and MEW for second homes, BTL, new kitchens, and so on).

a7man

The government are onto this and will probably reduce the interest rates on savings with NR to stop this happening, so there will be another rush of people out again..

The only banks that are a real risk are smaller banks with high volumes of sub prime lending, others will be saved by banks, private investors or the govt because of the huge impact on the economy if they failed. Hardly anyone on here is questioning 'high risk' banks though and spreading a few hundred k across 5+ banks is rediculous.

Also when I hear people taking about keeping savings below £35k because of interest taking savings over the £35k protection band - seriously, !!!!!! are you talking about..

esbo

It's called 'not being a complete idiot', the financial system is screwed, people are right to be concerned. Only a fool risks losing their savings.

nzseries1

a7man wrote: »

Also when I hear people taking about keeping savings below £35k because of interest taking savings over the £35k protection band - seriously, !!!!!! are you talking about..

Well if you've already got another account open, then why wouldn't you? You'd be a fool not to, in my opinion.

Paul_Herring

Also when I hear people taking about keeping savings below £35k because of interest taking savings over the £35k protection band - seriously, !!!!!! are you talking about.

If you accept that people subscribe to the "keep accounts to £35k" is it really that difficult to jump that little bit extra to "keep accounts to just under £35K otherwise you won't get your interest"?

6% on £30k for example is £1.8k pa.

I don't necessarily agree with all the £35k scaremongering going on, but I can see where those "keep it under £35K" are coming from.

LongTermLurker

Paul_Herring wrote: »

Also when I hear people taking about keeping savings below £35k because of interest taking savings over the £35k protection band - seriously, !!!!!! are you talking about.

If you accept that people subscribe to the "keep accounts to £35k" is it really that difficult to jump that little bit extra to "keep accounts to just under £35K otherwise you won't get your interest"?

6% on £30k for example is £1.8k pa.

I don't necessarily agree with all the £35k scaremongering going on, but I can see where those "keep it under £35K" are coming from.

I agree with the Fishy One... I don't see the point in risk for risk's sake - take risk if you think you may get a better return, but not if you don't have to. Small though it may be, putting all your money in one place is still a risk that can be avoided. I've posted some good reasons to distribute your money on one of the OP's least favourite thread topics, including immediate access to cash, raising the average interest rate, avoiding having all your money taken through fraud, etc.

To some people, every grand counts and they need to protect it, hence why for some, interest needs to be built into the £35k.

I agree, some people take it to the far end of a fart, but that's why some are willing to buy shares in small Japanese companies while some will only buy gilts; it would be better to explain to people why they shouldn't worry themselves so much, rather than tell them they're wrong and daft to think anything untoward could happen.

john.xs

whose t say we are not far from chaos?

isofa

esbo wrote: »

It's called 'not being a complete idiot', the financial system is screwed, people are right to be concerned. Only a fool risks losing their savings.

Do you write for Sky or the Daily Mail?! [I'm teasing!]

The thing is, how likely do you think it is, that a UK bank collapses and a depositor loses their money. I'd say virtually zero, the government with step in, or a competitor will buy out their assets.

How many people so far have lost any deposits? No saver at NR was ever even at risk and look at the mess they got in.

Unfortunately most people don't seem to have the sense or understanding of the industry to see beyond the daily mail shoved under their noses They listen to the media hype lap it up and start rambling on about the credit crunch.

I find MSE like Groundhog day sometimes, the same items being re-debated over and over again, ad nauseum.

a7man

This forum just seems full of the most paranoid people on the planet, how risk averse can you be..

Fraud etc are valid points and I can understand it for that reason - but you are the first person I've come across that has mentioned fraud as a good reason to spread. I'm arguing the spreading in case a bank goes bust - it sounds like some people have had large sums of money in their account for years and now need to spread it around 'just in case'. Someone needs to say something as people are wasting their time.