Savings - an idea for secure savings

zwobott

hello
, I have read quite few reviews about savings accounts; a lot of people seems to have invested heavily in Icelandic systems that have gone bankrupt... sorry

But, I can see, there is still a group of users who got some money to be put/hidden in a secure place. As far as I know, in the UK there is a cap - 50k GBP at each financial institution/bank is secured; in case bank/building society goes bankrupt you will get back your 50k, all the rest will be gone;

I have counted yet, but how many of these, a sort of secure havens for your savings do really exist here in the UK ? 7-10 ?

My question is - say you have got 10 different bank/savings accounts in the UK, each of them has got 50k GBP full protection, total 500k; and you still got some money left, would you consider investing/resting them elsewhere ? I mean other EU country with protection of up to 22k Euros for each account. Everything would be completely legal, no one else would have access to your money apart from yourself, interest rates would be around 5%/year. This would be offered in packages -simply you register in the UK via a representative/solicitor/financial advisor etc., create e.g. 10 accounts fully protected for the sum of 220k Euros or more, depending on how many financial instututions/banks would be in the package. As mentioned before, everything is fully covered/protected by the European Union's law/regulations, your money are safe, access to your individual account via the Internet/phone etc. You could cancel your account and transfer money e.g. next day (all depending on package you choose).

All of that for a small fee. Don't know how much, definitelly less than 1000 GBP.



This kind of idea has come to my head and doesn't want to leave.


Please, express your opinions. Thank you :T

Baldur

As many posters on this board appear to be extremely cautious about well established institutions, such as ING, which are covered by EU law and the Dutch Government's €100,000 compensation scheme, I suspect that your plan would be a non-starter for many - especially if you are talking about Eastern Europe.

zwobott

HI

well I am talking about Polish banking system, I am from there;
there are several major banks that are owned by e.g. UniCredit group, Allied Irish Bank, etc.; these are well known, big institutions, which have been on the market for good few decades, some established shortly after the I-st World War, some after the II World War, others in the early after 1989 when communism collapsed;

the point is, these bank have been dealing mostly in Poland, giving loans/mortgages mostly to Poles, rarely investing abroad, I guess none of them had invested in the US markets; My knowledge is also based on the Polish stock exchange - these major banks during the last year lost between 45-70% of their value - one of them PKO BP (the biggest one) used to cost around 12 GBP/share a year ago, today around 7 GBP/share; is there any bank from FTSE100 that has lost only 50% of its value during last 365 days ? only one lost less, HSBC which has not invested so heavily on American mortgages. The ''big four'' dived down quite deep, had to rescued by the government/taxpayers. My role is to prove these Polish banks are safe, built on solid foundations, and there was no need for the Polish government to bail out any of them!

I am aware that people are aware/cautious of different ''miraculous'' protection schemes etc.; well, mine is not a miraculous/magic scheme; it is quite simple; Polish economy is not an ''Icelandic economy'', based in 90% on banking system and agriculture; this is a solid rock economy that grew up for the last few years quite rapidly (GDP 2007 6.6%, source: http://www.economist.co.uk/countries/Poland/profile.cfm?folder=Profile-Forecast ; it has got around 623 USD billion GDP/year (purchasing power parity), British economy 2.13 USD trillion - less than four times bigger; Spain achieved 680 USD billion in 2000 after almost 15 years of being EEC member (all these data come from CIA Factbook); Poland has got steady growth since the collapse of communism 1989, which significantly accelerated in 2004;

In comparison, Icelandic economy, so called Scandinavian type, has generated only... 12.2 USD billion GDP (2007), so no wonder why they were/are not able to pay back all savings/deposits which were heavily invested on the US market; so tell me why over 300 thousand Britons deposited/alomost lost their money somewhere up north, where there were so weak foundations ?

I am offering/suggesting something simple and safe; fully protected (Iceland is not the EU member, didn't endorse the Maastrich Treaty, is not member of any major financial organisation, apart from NATO, OECD, WTO who cannot take responsibilty for its economy). In case Iceland goes bankrupt, there is no scheme to return money back to the British saving account holders of Icesave etc.;

I am writing all of these, only because here in the UK, Poland is mostly associated with cheap labour, fit women good food, stag parties in Krakow, and Bobski the Builder... well, I think we have got much more to offer; so please keep expressing your opinions about the idea; Thank you

agsnu

There are very many more than "7-10" deposit takers operating under full FSA authorisation in the UK...