How can we prepare ourselves for future banking disasters???

loupoppins

So, having been caught up in the whole Nat West fiasco it has made me think about what I need to do differently to be better prepared for similar situations in the future.
Me and hubby have 4 accs all with Natwest. It has worked really well up till now, and enabled us to budget really carefully. I am not planning on leaving Nat West. Now though I am going to open another account with another bank and try to put just a tiny bit aside (not much spare!) each month to build up a sort of emergency fun. I am also thinking of trying to put aside maybe about £100 in cash to keep at home...trouble with that is I can see us just dipping into it everytime we need cash and don't have time to get to atm(we have 6DC, they're always looking for money for school,trips etc!) Think Ill need to find somewhere creative to hide it!
I was on this occasion very grateful that I had at least some sort of stock cupboard with a lot of basic food in it. Doesn't solve the problem of things like fuit and milk though... I probably need to replace my previous stock of long life milk that I had for 2 years before realizing it was out of date!!
Petrol is tricky as DH needs petrol and had we not been able to get cash from the branch then we could have been stuck...having an emergency fund somewhere I suppose would avoid that....
So I wondered if anyone else had any good tips for how to be prepared for this should it happen again.It has been a fairly miserabel experience and I really feel for those more badly effected than us.

bobblebob

For those than can get them, get a credit card with a different bank than your bank account, to pay for petrol etc in an emergency

MoneySaverLog

Though not extensive these are some of the things I have set up, just in case...

Set up bank accounts at different banking groups, if at all possible try to get 2 overdrafts one on each of the banking groups (I use Lloyds TSB as my main account and NatWest as the backup to keep NatWest active I pay my DD's from this account and move over enough money from LTSB to cover the payments every month). DO NOT USE THE OD THOUGH, It's there for EMERGENCY use only. What's happening at NatWest at the moment constitutes an emergency, having the latest "must have" cause I must have it does not.

As suggested you might like to try and get 2 credit cards that you pay off in full every month. I'd suggest one VISA and one MASTERCARD. Again protection incase one or other goes down.

Make sure the debit cards issued by the two banks are OFFLINE cards, that can be used at Petrol Stations where you can pay at the pump.

Try to save up one months worth of expenses into a back up bank account, though most cases these issues will last a matter of days having cover for the first month is a good idea. If you can then try to build it up to 6 months of expenses in case of redundancy for example.

Have a emergency cash envelope in the house with enough money to cover food for the week.

KxMx

Someone on another topic suggested a supermarket gift card- choose somewhere you can get to by bus and have a change jar for the fares in case of being unable to get petrol.

If that isn't an option due to location then a bigger store cupboard would be the solution.

Things like milk and fruit though are liveable without for a few days though, I wouldn't worry about them too much.

I'll be reading this topic with interest because it seems my own emergency planning could use some improvement- I have 2 accounts with HSBC so off to open a basic one elsewhere next week and going to ask for a very small overdraft- although my chances of being overdrawn are very slim.

opinions4u

2 credit card providers - different banking groups.

2 current accounts with ATM cards - different banking groups.

2 savings accounts with growing balances - different banking groups.

Carry £10 in cash at all times as well.

Tin of beans in the cupboard and loaf of bread in the freezer.

huckster

Yes this is useful thread, as it should get people thinking about what contingency measures they can take, to reduce hassle caused by banking issues.

Having a credit card/pre paid card for emergencies and a small float of cash is a good idea. Also having some store cupboard food basics is a good idea, just in case you can't go to the shops. Alternative ways of getting to work, if it is not possible to fill up with petrol/pay for parking. etc etc.

We could be in a another banking crash within 2 years according to some financial experts, so this is all good practice.

innovate

Not strictly something to prepare for any future issues but this thread strikes me as the best of the existing ones to mention it.

Some people will have had missed payments, for no fault of their own, resulting in a default marker on their credit records. This could work against them when applying for any sort of credit account.

Anyone who thinks they may be affected should check their CRA files over the next couple of months, and get the default removed, or at least get a Notice Of Correction on their files, if it was due to the Natwest outage.

MoneySaverLog

innovate wrote: »

Not strictly something to prepare for any future issues but this thread strikes me as the best of the existing ones to mention it.

Some people will have had missed payments, for no fault of their own, resulting in a default marker on their credit records. This could work against them when applying for any sort of credit account.

Anyone who thinks they may be affected should check their CRA files over the next couple of months, and get the default removed, or at least get a Notice Of Correction on their files, if it was due to the Natwest outage.

Or perhaps try and make payment by some other method and hold back on the DD for the current month by explaining to the company involved what is happening.

stclair

innovate wrote: »

Not strictly something to prepare for any future issues but this thread strikes me as the best of the existing ones to mention it.

Some people will have had missed payments, for no fault of their own, resulting in a default marker on their credit records. This could work against them when applying for any sort of credit account.

Anyone who thinks they may be affected should check their CRA files over the next couple of months, and get the default removed, or at least get a Notice Of Correction on their files, if it was due to the Natwest outage.

It's unlikely a miss payment would registered for a payment that is a few days late with the CRAs Experian has already confirmed this in the media hype.

loupoppins

great ideas.
Credit cards is a good idea I hadn't really considered. Not sure I could get one...though may be able to now as CR is slightly better...may investigate ... or if not like the idea of a pre-paid one...
KxMx not sure I would want to be without milk for a few days! We get through 2 L a day! (6 kids, all have cereal and drink milk at other times LOL) Maybe a need a cow in the back garden:cool:.Would be better also if it hadnt rained so much that all my strawberries are refusing to ripen in the garden! Could manage without fruit though ...

cpj1987

For me, it's been the kick I needed to open a bank account elsewhere, but also taught me that the best way for me to prepare for the future is to stick with Natwest.

I have a fair few accounts with Natwest at the moment. I used to have even more, but I've been closing them down one by one since the start of this year. My system has always been to have my salary come into my current account, and to split it between various other accounts as soon as it arrives. When a bill is due out or I'm buying something, I transfer back in what I'll need. I fortunately haven't needed money this week, but my system was made impossible due to the fact that I couldn't transfer money between accounts.

From now on, I'll just be using a current account with Natwest and one savings account elsewhere. From now on, all the money I need for the month will stay in my current account and be strictly regulated, rather than sent elsewhere for management purposes. If this happens again and I simply can't access Natwest, I'll have an account elsewhere with money in (and vice versa).

Ultimately, I believe Natwest have handled the situation very well, and I trust them still. I'm sticking with Natwest because I believe if I ever desperately needed money and couldn't access it, they'd be there to help. However, I'm glad I've learnt my lesson and applied for an account elsewhere. It's going to require me to completely change the way I manage my money, since there'll always be cash in my current account that I risk spending, but at least I know I'll have back-up cash somewhere else.