£2.3bn withdrawn from accounts in Jan

Mikeyorks

Looks more like someone wanted an end result ... and made up the facts to fit.

There's always a significant outflow of funds in January. They've picked up the obvious one of CC payments relating to Christmas purchases. But not the other obvious one of SA tax funds flowing into Treasury coffers from mid-Jan in excess of £5Bn. And a considerable chunk of that comes out of high interest deposit accounts.

OfficeSpace

Mikeyorks wrote: »

Looks more like someone wanted an end result ... and made up the facts to fit.

There's always a significant outflow of funds in January. They've picked up the obvious one of CC payments relating to Christmas purchases. But not the other obvious one of SA tax funds flowing into Treasury coffers from mid-Jan in excess of £5Bn. And a considerable chunk of that comes out of high interest deposit accounts.

Exactly what I was thinking! There's a number of factors at play, not just the 'savers protest' the media want.

LesU

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.

I think that's called smoking.:D

LesU

OfficeSpace wrote: »

Exactly what I was thinking! There's a number of factors at play, not just the 'savers protest' the media want.

Another factor that relates to the recent large withdrawals of money from ISAs, is the Icesave effect. A significant amount of money was refunded to Icesave ISA holders during December and January as free floating cash or cheques. This now has to be re-invested into an ISA or not as the holder sees fit. This money may be being included in the banks' deposits, but it may not yet be counted as ISA cash, or be stuck in limbo waiting for the banks and BS's to process.

Drebin

Well they say February's figures are heading the same way so other than Jan specific stuff, the reasons will most likely be:-

1) People paying off credit
2) Investments
3) Newly unemployed delving into savings
4) Pensioners having to delve into savings as well

This will go on throughout the year and I'm sure banks can't afford to loose £2.3bn every month so they're going to have to do something to attract more deposits.

withnell

Drebin wrote: »

Well they say February's figures are heading the same way so other than Jan specific stuff, the reasons will most likely be:-

1) People paying off credit
2) Investments
3) Newly unemployed delving into savings
4) Pensioners having to delve into savings as well

This will go on throughout the year and I'm sure banks can't afford to loose £2.3bn every month so they're going to have to do something to attract more deposits.

For 1, the money goes straight back into the bank to reduce their liability, offsetting the loss of deposit.

For 3/4, the shop the money is spent at will bank the cash...