Debate House Prices
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Savings Guarantee - worth the paper it's written on?
MrRee_2
Posts: 2,389 Forumite
I'm getting the jitters.
The EU is about to launch massive QE - to defend itself the UK will have to cut IR's to zero.
I was getting this feeling then Iceland defaulted and took some of my money with it! Luckily the Labour Government stepped in and re-paid my deposits. I made a transfer of funds when I got wind of the doom - those funds were in limbo when it went pear shaped .... not in my Icelandic Accounts and not in my UK Accounts either!
I'm not a risky investor, I truly believed the Icelandic Government when it said it Guaranteed the deposits I was making ..... then, out of the blue, the Icelandic Head stated that the guarantee wasn't worth diddly!
We all here have many accounts with £85k in scattered all over the place ..... are we sure that the UK Government would actually pay out on the promise - or is it a sham?
I think they would claim extreme conditions and let our savings sink never to be seen again!
Your thoughts? Please quell my fears!
The EU is about to launch massive QE - to defend itself the UK will have to cut IR's to zero.
I was getting this feeling then Iceland defaulted and took some of my money with it! Luckily the Labour Government stepped in and re-paid my deposits. I made a transfer of funds when I got wind of the doom - those funds were in limbo when it went pear shaped .... not in my Icelandic Accounts and not in my UK Accounts either!
I'm not a risky investor, I truly believed the Icelandic Government when it said it Guaranteed the deposits I was making ..... then, out of the blue, the Icelandic Head stated that the guarantee wasn't worth diddly!
We all here have many accounts with £85k in scattered all over the place ..... are we sure that the UK Government would actually pay out on the promise - or is it a sham?
I think they would claim extreme conditions and let our savings sink never to be seen again!
Your thoughts? Please quell my fears!
Bringing Happiness where there is Gloom!
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Comments
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....We all here have many accounts with £85k in scattered all over the place ..... are we sure that the UK Government would actually pay out on the promise - or is it a sham?...
...
They have paid out so far.
http://www.fscs.org.uk/industry/sub-schemes/accepting-deposits/deposit-defaults/0 -
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Is it the govt paying out, or the other banks?
Were the Icelandic banks backed by Iceland or the UK? All of them were based here?
There's an argument that there should be no guarantee and people should think harder about where they put their money.0 -
Is it the govt paying out, or the other banks? ....
Ultimately it's the other banks who bear the cost, but the government has so far funded the FSCS were necessary....Were the Icelandic banks backed by Iceland or the UK? All of them were based here?
Depends.:)....There's an argument that there should be no guarantee and people should think harder about where they put their money.
The trouble with that brutally neo-liberal argument is that people might prefer not to think at all and stuff their money under the mattress.:)0 -
Ultimately the guarantee is useful for providing confidence. You know that short of a major financial disaster that decimated the UK economy it'll cover you. The circumstances in which the guarantee wouldn't be honoured are so dire, that if I thought it was remotely likely the guarantee failing would be the least of my worries.Having a signature removed for mentioning the removal of a previous signature. Blackwhite bellyfeel double plus good...0
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If we get a full scale banking collapse then the guarantees are worthless, although we could just devalue the currency and pay it back. £85k or a can of beans...
Somehow I doubt the OP has anything to worry about.0 -
Mallotum_X wrote: »
Somehow I doubt the OP has anything to worry about.
Yes, I doubt it too, considering the OP themselves has suggested large amounts of savings are for fools and you are better off investing...
Like here, for example..Fear stops some people buying to let .... the fear of the tenant from hell .... I understand that fear - but it's generally very rare to have that happen.
Even if it did happen, you are still in a far better financial position than sitting on savings losing money!
It's all a land of make believe....0 -
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To OP
If you are worried plough it into the residential housing market like all the other landlords here.... it's not your fault, it is the system, we don't blame you, we blame our useless and impotent political system.
Your money is safest and will grow nicely if you invest in homes.
Houses are for profit not homes.Peace.0
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