Bradford + Bingley 6.40% AER Internet Saver

Rafter

Gordon_the_Moron wrote: »

No Bradford and Bingley are not in a similar position to Northern Rock, they have not applied to the Bank of England for an emergency loan and they have not had a large percentage of their deposits withdrawn by 1000s of customers, their shares have lost about 15% of their value. Alliance and Leicester have lost around a third so there position looks worse. I would be extremely surprised if any of them go under (to the point I would risk my own money in any of them) but even if they do unless you have over £35000 you are protected. I have money in Bradford and Bingley and it ain't moving anywhere.

This account sounds good if there are no strings attached, and if there are it still may be good depending on what they are.

Yet.....

According to an article in the Sunday Times B&B borrow a lot more money than most from other banks to run their business..... and that is what triggered to problems at Northern Rock.

You have to ask yourself why they are suddenly offering such a juicy savings account - particularly as it now looks like the base rate is coming down.

I'm sure savings customers will be protected because the bank of England would bail them out, but I wouldn't be buying shares at the moment.

How can they offer a savings account at 6.4% and mortgages at less than 6% and still make the same profits?

R.

YorkshireBoy

Secret_Wookie_2 wrote: »

I will be moving my money out of Sainsburys into this and earn an extra 0.15%.

Is that wise?

If you move it by BACS transfer, you'll lose at least 3 to 4 days interest. Each day taken to transfer will take 43 days to recover with such a small differential, meaning it could be well into 2008 before you see a benefit.

PauliPauli

equitydealer wrote: »

When I've done this in the past, the account has appeared immediately

well mines still yet to appear few hours later, last time happened day after.

Personally I expect B&B to bomb but slowly, with enough time to remove monies, although with goverment guarantee dont really care as can "wait" for my "100% gordon refund"

My guess: I'm looking after xmas for real problems to hit ..

So many of the buy-to-let market landlords have silly tight profit margins paying interest only loans, relying on their houses to keep going up, this market will bomb first along with B&B profits, as desperate try to sell as rents will be reduced because rental tenants will see lower mortgage payments on cheaper houses even though interest rates will increases

andrew_b_5

Would you trust the word of the "government"?

bristolleedsfan

Gordon_the_Moron wrote: »

No Bradford and Bingley shares have lost about 15% of their value. Alliance and Leicester have lost around a third so there position looks worse.

not true, bradford+bingley shares since floatation have had a problem with increasing sharply ( never have done) whereas A+L and NR shares have prev soared on numerous occasions.

as saying goes those that go higher have further to fall so because B+B share price increases have been modest, its falls have been relatively modest as well.

bristolleedsfan

PauliPauli wrote: »

My guess: I'm looking after xmas for real problems to hit ..

So many of the buy-to-let market landlords have silly tight profit margins paying interest only loans, relying on their houses to keep going up, this market will bomb first along with B&B profits, as desperate try to sell as rents will be reduced because rental tenants will see lower mortgage payments on cheaper houses even though interest rates will increases

buy-to let-market landlords are selling up in droves and taking their profits out.

EdInvestor

wombat42 wrote: »

It wouldnt surprise me if ICICI bumped it up in response as I think they feel they have to be just a smidgen ahead of every UK bank or building society to woo customers otherwise people just wouldnt find any incentive to pick a foreign Indian savings provider in preferance to a home grown savings provider.

What would happen if the parent bank in India went bust, I wonder?Would savings in India be protected? What about savings in a foreign subisdiary eg in the UK?

Or are all these foreign bank subsidiaries under the UK rules?BCCI's parent was based and regulated in Luxembourg and there was no protection for savers here IIRC.

[Deleted User]

Fitch Ratings best to worst
Long term secured debt
HBOS - AA+
RBS - AA+
Barclays - AA+
Alliance + Leicester - AA-
Bradford and bingly - A
Landsbanki (ICESAVE) - A
Northern rock - A-
ICICI - BBB-

Happy hunting

btw id be happy to have my money stored away in northern rock its safe money wise but its not safe from being taken over by a bigger corp like HBOS.

Alfie_E

EdInvestor wrote: »

What would happen if the parent bank in India went bust, I wonder?

That would all depend on what ICICI Bank UK had been doing. ICICI Bank UK is a public limited company. It’s finances should be completely separate from its parent company. If ICICI Bank UK were taken down by the failure of its parent because it had been taking risk for the benefit of its parent company, the directors would be looking at criminal charges.

EdInvestor wrote: »

Or are all these foreign bank subsidiaries under the UK rules?BCCI's parent was based and regulated in Luxembourg and there was no protection for savers here IIRC.

I believe that to be able to take deposits from UK consumers, a bank now has to be licensed by the FSA.

Steve_xx

EdInvestor wrote: »

What would happen if the parent bank in India went bust, I wonder?Would savings in India be protected? What about savings in a foreign subisdiary eg in the UK?

Or are all these foreign bank subsidiaries under the UK rules?BCCI's parent was based and regulated in Luxembourg and there was no protection for savers here IIRC.

To take deposits in the UK these banks have to be licenced by the FSA, otherwise they are operating illegally here. Therefore your cash is protected in the same way as any UK high street bank under the compensation scheme if you bank with the likes of ING, ICICI & Icesave.