£2.3bn withdrawn from accounts in Jan

Drebin

http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=478349&in_page_id=7&position=moretopstories

Looks like savers are doing something about the rubbish rates some banks are offering.

rb10

How much is normally withdrawn in January in previous years?

liam8282

Yes just switching from a rubbish savings account, to an equally as rubbish ISA in the majority of cases.

Or possibly shoving all the cash into tesco bags under their beds??

[Deleted User]

I have withdrawn in order to save in another institution with better rates. I am not afraid to move my money around as I see fit and am still saving

rb10

That is not what the article is saying though - it says that 'deposits at High Street banks fell by £2.3bn in January', so if you moved £1000 from one bank to another, that would count as a net move of £0.

Masomnia

The implication is that people have decided that returns will be better if they invest the money instead, which is probably a good thing in my opinion.

withnell

Doesn't say how much deposits shot up last year as people piled out of shares....

Drebin

Seems the previous high was £1.5bn in 1997:-

http://www.telegraph.co.uk/finance/personalfinance/savings/4799679/Savers-withdraw-record-amount-from-banks.html

libra10

There's an article here which explains more about it.

http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=478349&in_page_id=7&ct=5

Most of our personal savings are in fixed rate accounts still paying around 6% interest rates. The dramatic drop in rates will hit us when the various terms end. However, we have an Over 60s account with Nationwide, which was paying around £80 monthly, just a few months ago. The interest has been gradually decreasing and today and it's down to £15.

No wonder savers are protesting!

Pssst

I have switched money around,pulled some out and invested some elsewhere. I also plan to spend some. I'm not giving banks use of my money for next to nothing. I'd rather burn it.

libra10

Pssst wrote: »

I have switched money around,pulled some out and invested some elsewhere. I also plan to spend some. I'm not giving banks use of my money for next to nothing. I'd rather burn it.

Steady on, Pssst - burning is a bit drastic!