Do the banks want my money?

rogermhunt

Thanks for everyone's replies . . .
As things currently stand, I plan to put the lagacy money into my Halifax Saver (which holds its 2.8% interest rate until June next year) . . . the only issue for me here is that this will put me very considerably over the £85K protection limit. My feeling however is that it's extremely unlikely that Halifax will 'go bust' in the next few months and that it will allow me a little more time to think exactly how I want to proceed. I know this might set alarm bells ringing with some (as it has with me), but I really can't see there being a problem in the short term.

Thrugelmir

rogermhunt wrote: »

. . . the only issue for me here is that this will put me very considerably over the £85K protection limit.

Much depends if you have a purpose for holding so much "cash". As inflation may well erode its buying power.

Babycakes

Cash is no longer King. More like cash is peasant

jimjames

Thrugelmir wrote: »

Much depends if you have a purpose for holding so much "cash". As inflation may well erode its buying power.

One benefit of the current low rates is that is may make people holding large amounts of cash "for safety" realise that it isn't as safe as they think.

I guess the reason these new entrants are paying high rates is that they can't access the cheap Funding for Lending money so they do have to compete for customers cash instead!

2010

I think I`d rather have my money in the next to useless Halifax than up the Punjab!
The chances of the Halifax going under (again) is remote and the advantage of having your dough in an "easy access" 2.8% account is, if a decent rate does come along, you can move fast and get it because, these days, they don`t last long.

Don`t know how you`re fixed but a joint account doubles the protection to £170k

CKhalvashi

bowlhead99 wrote: »

Also, the government's Funding for Lending project has really reduced the cost of borrowing for those banks taking part. If you're a bank that finds itself able to get its hands on government-backed finance at 2% less than you used to be able to, then you are not as desperate to get a deposit from a retail customer like you or me, and pay through the nose for it. The savings to banks under this scheme might be relatively better for some banks (the ones with lower credit ratings who previously had to pay more in the wholesale market) than others, but if one or two banks drop their retail savings rates, another will follow suit because they have less competitive reason to keep paying the high rates.

But they're also missing an opportunity here to leverage the new personal funding against higher-risk loans, both for startup/small businesses and for mortgage customers.

This could be a decision that they regret in the long term, IMO, if the whole market is balanced out.

We're looking at 5 years of missed opportunity for the leading players in business.

Our overall business plan is one that fits into what banks are looking for; buying small businesses and expanding them. New players have more opportunity to do this better than us.

CK

bigadaj

Hopefully expanding and not expending presumably.

CKhalvashi

bigadaj wrote: »

Hopefully expanding and not expending presumably.

Thank you

Currently on MSE sat on an iPad, in a meeting, in a boardroom, so please excuse my spelling

CK

rogermhunt

2010 wrote: »

I think I`d rather have my money in the next to useless Halifax than up the Punjab!
The chances of the Halifax going under (again) is remote and the advantage of having your dough in an "easy access" 2.8% account is, if a decent rate does come along, you can move fast and get it because, these days, they don`t last long.

Don`t know how you`re fixed but a joint account doubles the protection to £170k

This was pretty much my way of thinking, so thanks for your re-assurance.
As regards the joint account . . . I'm not sure I can change my existing 2.8% online saver to a joint account; but I could phone and find out.
Cheers

2010

rogermhunt wrote: »

This was pretty much my way of thinking, so thanks for your re-assurance.
As regards the joint account . . . I'm not sure I can change my existing 2.8% online saver to a joint account; but I could phone and find out.
Cheers

You can make it joint but you need a special form (phone and get them to send you one, I don`t think local branches have them) and then you have to go to your local branch with the form and the joint applicant with ID.

Halifax likes to make everything as difficult for their customers as possible.

All this FSA £85k guarantee has never been tested as no bank has been allowed to go to the wall yet.
We all know what they promise but whether anyone would actually get their £85k is another matter.
Having said that I can`t see any UK government letting a UK bank fail.
The fallout would ruin this country`s financial reputation.