Looking to withdraw my savings from the banking system

ianmoticon

Some interesting tips here. There must be a lot of people who have a safe or who own gold stored in a safe location etc. There was a whole BBC programme about gold which talked to several investors.

2 years ago, everyone believed the banks were safe and that it was impossible for one to go out of business. Who knows what beliefs will be shattered within another 2 years, and what financial catastrophes lay ahead. Let's revisit this thread in 2 years time

BallandChain

Just on Sky News on the ticker tape:

More than 500,000 account holders with the Post Office will NOT have their money protected by the UK's Savings Protection Scheme.

This is worrying for those with savings in the Post Office. Could this happen to banks and building societies?

bandraoi

I'm interested in the answer to the OPs original question.
Not, as he wants, to store every penny I have outside the banking system, but because I do think it's an idea to have a bit of extra cash on hand at the moment.

In the same way it's sensible to have a few candles at home in case the electricity goes out, and a bit of food in the cupboard in case of severe weather, it seems to me that in these financial times it's sensible to have a bit of cash on hand without needing a bank machine.

If I'm going to have say £1000 in the house, I'd rather it was properly stored than otherwise.

Paul_Herring

BallandChain wrote: »

Just on Sky News on the ticker tape:

More than 500,000 account holders with the Post Office will NOT have their money protected by the UK's Savings Protection Scheme.

As discussed elsewhere, the reason for this is the Irish Scheme now promises(!) better protection (100% of all money) than the FSCS (100% of the first £50,000 only,) thus making the FSCS redundant.

martinman3

ianmoticon wrote: »

Any advice about the safest thing to put in a safe is welcomed. Gold? I've just told you that I'm not discussing my decision, only the question in hand.

Beware, if you buy £5000 or more of tax exempt gold in a single purchase, or £10000 or more in a 12 month period from a bullion dealer they must generate an invoice for which they will need your name and address.
These are the HMRC rules, I will leave you to work out what their purpose is.;)
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000104&propertyType=document#P209_17988

talana

bandraoi wrote: »

In the same way it's sensible to have a few candles at home in case the electricity goes out, and a bit of food in the cupboard in case of severe weather, it seems to me that in these financial times it's sensible to have a bit of cash on hand without needing a bank machine.

If I'm going to have say £1000 in the house, I'd rather it was properly stored than otherwise.

How often are you so out of the way that you never pass at least 1 ATM at some point in the day?
Keep enough cash on hand for emergency essentials (equivalent to your candles or bit of food) or unforeseen bits and bobs, or to last until you next pass an ATM, OK. But £1000?

And let's say you follow the OPs original suggestion and buy and install a safe. How much is that going to cost (I have no idea by the way)? A couple of £100s at least for a decent one? Spend £100s to store £1000?
Makes no sense to me.

bandraoi

talana wrote: »

How often are you so out of the way that you never pass at least 1 ATM at some point in the day?
Keep enough cash on hand for emergency essentials (equivalent to your candles or bit of food) or unforeseen bits and bobs, or to last until you next pass an ATM, OK. But £1000?

And let's say you follow the OPs original suggestion and buy and install a safe. How much is that going to cost (I have no idea by the way)? A couple of £100s at least for a decent one? Spend £100s to store £1000?
Makes no sense to me.

The £1000 would be for me, other people, particularly people with more extravagant lifestyles or several dependents may want more. Installing a safe would be overkill for me, it may not be for others.

While I don't think it's credible that the entire banking system will collapse, there is a chance that the bank I use will collapse and that I won't be able to access my money for a week or two, or that I will only be able to withdraw limited quantities for a period. A cash reserve at home means I know I can deal with any emergency that arises.

wombat42_2

Never fear. Me and the boys offer a free 24-hour safe security service. Just give us the address and we will be round in a jiffy.

oneandonlyboy

Gold is at a high at the moment, unlike 5/6 years ago when our government sold alot of our gold for and a 3rd of todays price.

Depending how much money you want to store will depend on the size of the safe. A standard room safe 3' by 5' would require a strong room/vault which wouldnt be cheap to install or build. You would have to think about ways into that room ie ceiling,walls, floors etc. and reinforce them.

If your help to build or invest in that sort of a set up then your asking for trouble. Brick safes and small safes can be removed in seconds.

newsaver2008

Why hasn't anyone suggested that he invest in property??