A Special Account for Ex-Icesavers ?

Veryunique_2

There is an awful lot of money looking for a new home now and the amount will be increasing as the days and weeks go by.

We have all been scrabbling around trying to find good rates and opening multiple accounts hoping something reasonable will still be open by the time our money comes through.

I personally am feeling really mad this morning knowing that because my 2nd email didn't arrive last night it is now too late to get any more money into the Poppy by Tuesday's deadline (3 days BACs transfer from FSCS and then CHAPs). To make matters worse SAGA and Birmingham Midshires are dragging their feet and sitting on 2 whopping cheques.

I was wondering whether we could generate enough interest in the press and other media to get some financial institutions to see beyond the end of their noses and at least think about launching a special high interest account(s)
for Icesavers' money.

After all the size of the customer base is known, the amount of money available is known so it shouldn't be too difficult to calculate what would be an attractive and beneficial rate of return for saver and lender.

There is a gap in the market here and we should be petitioning for someone
to take advantage of it.

isofa

I very much doubt it, rates are on the decline, what you might see as a "lot of money" to large institutions isn't that much at all, relatively to their own deposit accounts.

A Bank/BS would have to be very desperate for money to now offer a really high rate against the competition.

Others will treat unusual high rates with deep suspicion, suggesting a company's desperate need to shore up cash.

There are still some good deals, the Tesco internet account is 6.5% shortly to drop to 6% for the first year, and there are others, you just have to shop around.

http://www.moneyfacts.co.uk/savings/bestbuys/default.aspx

meunier

I agree. This is why the whole Icelandic situation came about in the first place. Exactly the same situation. It will, I predict, have just the same outcome as the first one and I even suspect the Audit Commission will be hunting down the foreign accounts soon. We will, no doubt, meet in passing.

The only solace I think we can find is that with the pound plummeting (1.16 against the Euro today) inflation, I fear, can be but around certain corners and --- regardless what they all say --- will force rates back up. Of course, that doesn't help in the short term and without the access.

I think that what it does mean --- is that if you invest more than any limit --- you should invest in easy access or in bonds with breakable terms so that you can have some control over your own situation in world markets.

meunier

Further to my previous note - I cannot activate the 'edit' button at the moment - I would like to recommend people take a look at this posting on the FT:

http://blogs.ft.com/maverecon/2008/11/how-likely-is-a-sterling-crisis-or-is-london-really-reykjavik-on-thames/

I am glad that someone apart from myself seems to have come to this conclusion.

meunier

The most vivid two sentences in the referenced article are these:

With enough mistrust, the interest rates will rise by enough to crowd out completely the stimulus to private demand provided by the tax cut or public spending increase. Lack of confidence in the government’s fiscal sustainability would also undermine confidence in sterling. In the worst case, we could see a run on the banks, on the public debt and on sterling all at the same time. This is not the most likely outcome yet, in my view. But it is a distinct possibility.

Caveat Emptor