Banks don't need our money any more.... 15 January at 10:11PM in Savings & Investments 6 replies 801 views

RG2015

Banks don’t need our money anymore! What does this mean for savings accounts?

https://www.fool.co.uk/personal-finance/your-money/learn/banks-dont-need-our-money-anymore-what-does-this-mean-for-savings-accounts/

Well, perhaps not at the moment and not for while.

Basically, what the article says is that mortgage demand is down, so banks don't need money from savers.

This does make some sense although individual banks (and building societies) may have a short term shortfall that could result in an increase in some savings rates.

Overall though it sounds like there won't be much joy for savers for a while yet.  

Thrugelmir

Banks haven't relied on retail deposits for a very long time. Building societies don't have the same abilities to raise deposits as banks. Though there's relatively few of any size left now. 

Albermarle

Most of the smaller banks that usually have the best rates , are not primarily lending on residential mortgages.
Normally SME lending/finance or things like car finance plus some BTL and commercial  mortgages.
So hopefully they will still need our savings to fund their activities.

SallySunshine

Just spent 15mins trying to open a joint  Gatehouse 1 year Woodland account.
Initial password, 3 security question/answers, another for telephone security. x 2
usual name address, tel. no's, bank sort code, acc. no etc.
Get right to the end and guess what?
Haven't passed their security identification.
Its like going back years, getting a bank employee signing a verification letter to say I'm a customer.
Or from a solicitor.

Looks like its back to my other accounts to deposit this maturing account. Less interest but certainly less hassle.
15 mins of my life I won't get back.
I'm going to ring them tomorrow probably won't get anywhere but it'll make me feel better!

london21

The interest rates are terrible. 

Many years ago, Santander offered 3% interest now like 0.3%.

Better off investing in lower risk funds than putting in the bank. 

happybagger

I struggle to see how some building societies maintain their funding base. Inertia must really be a thing.

Pretty much every account at mid-asset societies Hinckley and Rugby BS and Leek United BS pay 0.1%, and neither have done anything after the base rate rise.

On top of that, Beverley BS wrote to me reducing my rate. Accounts at all three have been closed.

SallySunshine

Interesting, re my previous post, rang Gatehouse this morning to withdraw my application giving the reason re signed verification from bank etc. was just too archaic.
Was told just photocopies of necessary identification would be enough, and that the website would be updated to show that.