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

Alleycat

As well as what's already been posted, there are a lot of people worried about failed direct debits and standing orders. I would suggest not having regular payments set up to leave the account on or immediately after payday. This means that if this sort of thing happens again or if for some reason you're wages/benefits are delayed or not paid at all, you've got time to sort things out.

For example I get paid on the 26th and my husband on the last day of the month. Our payments are all set up to go out between the 1st and 10th of the month.

jason1231972

I haven't been affected by Natwest problems, but was thinking about what I'd do if my own bank went 'down'. Like many others, I think several credit cards from different providers and on different networks (Visa, Mastercard) would do the trick nicely.

I have three current accounts with different banking groups (granted there's no money in two of them at the moment, but I'm planning on shifting some of my small savings balances around), and four credit cards all with different groups (though two clash - HSBC current account and M&S credit card, and LTSB current account & LTSB credit card. The others are Capital One and Tesco).

So, I have potentially five completely unrelated current or credit accounts to fall back on. Only a major disaster affecting the whole banking network could get past that plan!

MoneySaverLog

jason1231972 wrote: »

I have three current accounts with different banking groups (granted there's no money in two of them at the moment, but I'm planning on shifting some of my small savings balances around), and four credit cards all with different groups (though two clash - HSBC current account and M&S credit card, and LTSB current account & LTSB credit card. The others are Capital One and Tesco).

Don't think having the credit card with the same bank as your bank accounts will be much of a problem as it's more protection for if Visa or Mastercard went down rather than each of the banks. If you've got money in different bank account groups you'll cover yourself for much of the risk, and having some spare emergency cash in the house will also help where you cannot get to the bank in an emergency.

C_Mababejive

Simples,,buy a big safe an store cash at home. How do we know that there was a technical error and not simply a shortage of money at the bank to settle its liabilities? we should be told !

Whats the point in having money in the bank anyway since there is precious little interest to be had. Best to keep it yourself where you can see it !

innovate

C_Mababejive wrote: »

Simples,,buy a big safe an store cash at home. How do we know that there was a technical error and not simply a shortage of money at the bank to settle its liabilities? we should be told !

Whats the point in having money in the bank anyway since there is precious little interest to be had. Best to keep it yourself where you can see it !

Have you been on the sauce a bit early today?

Gentoo365

Visa / Mastercard can choose (or be told to) approve payments even if the bank systems are down.

They just hold the transactions in a queue and process them when the bank gets back up again.

In fact Natwest/RBS would have had the option to instruct their card providers to auto-approve all debit card payments. However they were probably a bit wary that this could produce a lot of fraud (i.e. people realising that cards never get declined and buying loads of stuff with no intention to pay it back).

In fact. A lot of shops have a floor limit of around £30 where some debit cards are not checked in real time. Again Natwest are unlikely to say "Just make lots of small purchases of £30 and it is not checked" as that would again risk fraud.

Gentoo365

C_Mababejive wrote: »

How do we know that there was a technical error and not simply a shortage of money at the bank to settle its liabilities? we should be told !

Because if there was a shortage of money the treasury / regulator would have taken control.

Also a liquidity (cash) issue would not have affected the balances shown and the payments received. It would only have affected the people receiving money from sent from RBS to other banks.

C_Mababejive wrote: »

Whats the point in having money in the bank anyway since there is precious little interest to be had. Best to keep it yourself where you can see it !

Apart from the security issues the advantages are as follows:

1) Banks provide payment services (debit card, direct debit, bill payment)

2) Banks can then lend the money out to others in the form of mortgages

3) Banks can lend to businesses

4) Banks can lend to the Government (by buying bonds)

Of course, only number (1) may actually benefit you directly, but it is still a good advantage.

amcluesent

BASIC DISASTER SUPPLIES KIT

A basic emergency supply kit could include the following recommended items:

Water, one gallon of water per person per day for at least three days, for drinking and sanitation
Food, at least a three-day supply of non-perishable food
Battery-powered or hand crank radio
Flashlight and extra batteries
First aid kit
Whistle to signal for help
Dust mask to help filter contaminated air and plastic sheeting and duct tape to shelter-in-place
Moist towelettes, garbage bags and plastic ties for personal sanitation
Wrench or pliers to turn off utilities
Manual can opener for food
Local maps
Cell phone with chargers, inverter or solar charger

opinions4u

I like this web site:

http://www.preparingforemergencies.co.uk/

“All information received by the hotline is researched and investigated before any police action is taken. Let us decide whether the information you have is valuable or not. And here's a hint: just because the Arabic man behind the counter at your newsagent looks shifty and has a cold, it doesn't mean he's stockpiling biological weapons, okay? Sheesh.”

innovate

STOP PRESS:

Until further notice, the Environment Agency says, we have only 22 flood warnings right now, so you can substitute "Water, one gallon of water per person per day for at least three days, for drinking and sanitation"

with: umbrella, thigh-high wellington boots, inflatable boat, emergency flares, 2 Mars bars, and a paddle each.