Savers should be rewarded.

Kohoutek

ILW wrote: »

As far as I know there are no limits to cash withdrawals on most savings accounts. It is more the sentiment of a run on the banks that would cause the run. Look at NR a few years ago.

I wasn't sure what you meant by "remove their deposits". I meant withdrawing physical cash –!I can't withdraw more than £500/day in notes from my bank for example.

It's true that NR's depositors withdrew their deposits, but they simply moved them from one bank to another. Therefore it doesn't follow that the whole banking system could collapse by that process.

Loughton_Monkey

leveller2911 wrote: »

About as qualified to give financial advice as an Ice cream van driver.........

Last time I bought an ice cream, I complained about the price (£2) and said to the guy "I've been in this queue for 10 minutes, and seen you selling 50 of these..."

"So what?" he asked.

"Well that's £100 every 10 minutes, £600 an hour. That's more than my IFA charges!"

All I got in return was "Yes, I know. It's more than I charged when I was an IFA too."

DervProf

Kohoutek wrote: »

If you're not satisfied with the rate of return on your savings, then why don't you change your investment strategies or consult a financial advisor rather than ranting?

I have done. Myself. I didn't say I was not satisfied with the return on my savings, as I have "shopped around" and none of my money is sitting in an account paying 1%. And why would I let a financial advisor charge me to tell me which horse to pick ? I'd rather take my own risks (which I have done quite succesfuly so far).

So you would like to see another recession?

No. And I don't want to see another credit boom either.

DervProf

michaels wrote: »

carry on paying 0% on current accounts

You can get 4% on a current account (with a few strings attatched, but you do get instant access to your money).

If you do have a 0% current account, then simply keep as little as possible in the account, shift the excess into an interest earning account. I don't see a problem with most banks paying no interest on current accounts, as those accounts must be the most expensive for the banks to provide.

DervProf

whatyadoinsucka wrote: »

ok. am i being stupid now, i bought a reasonably priced house for the current market.
my mortgage paperwork clearly states for each £1 borrowed i will repay £1.82 over the mortgage term.

Therefore in the short term i am doubling my money (ignoring the inflation aspect)

Genius !

Right, I`m going to try and get a mortgage at the highest rate possible (one of those sub-prime ones, that we don't, or didn't have in the UK).

I expect the total repayments over the term will be well over double what I borrow. Now here's the clever bit..... I'm going to pay it all off within 1 year, therefore over doubling my money in the short term !

Thanks for the tip

DervProf

James_N wrote: »

So, judging by your frequent comments elsewhere you are having your parents support you for free while you moan about affordable housing. Great move.

Does sound like a great move.

Unless the parents are mean or stupid, they will realise why their offspring are staying at home for longer (while moaning about affordable housing). It's not rocket science. If a youing person leaves home to rent a place to live, they're going to find it more difficult to save to buy a place of their own. They are also helping to maintain one of the reasons they are finding it difficult to afford their first home.

ukcarper

I would say that if children with parents and saved it would be a good thing but they would have to actually save and not spend most of their money on expensive toys and drinking.

FTBFun

ILW wrote: »

Interesting fact is that if a lot of savers all decided to remove their deposits at the same time, the whole banking system would collapse and take the whole economy with it. Does make you think.

Although it is so unlikely to not really worry about. I somehow doubt everyone is going to take all their money out and shove it under the mattress.

Kohoutek

FTBFun wrote: »

Although it is so unlikely to not really worry about. I somehow doubt everyone is going to take all their money out and shove it under the mattress.

Furthermore, there isn't anything like enough physical currency in existence for that to be possible.

michaels

ILW wrote: »

My savings are on base plus 2.25%.

Is that rate for ever or a bonus that will expire? I do have access to such an account but put my money elsewhere for higher instant access returns.

DervProf wrote: »

You can get 4% on a current account (with a few strings attatched, but you do get instant access to your money).

If you do have a 0% current account, then simply keep as little as possible in the account, shift the excess into an interest earning account. I don't see a problem with most banks paying no interest on current accounts, as those accounts must be the most expensive for the banks to provide.

I have maxed out my vantage account allocation which I use for savings. The least any of my instant access money 'earns' is 2.5% on an offset but the majority of current accounts pay much less and will not increase when the base rate increases thus increasing banks margins when it does happen.

Rates like the one quoted paying base plus 2.25% will not be available when the boe base returns to more normal levels.