Get back at em...

Thumbs_Up

To my fellow cash investors, if we all hold our nerves and sit on our hands for a few weeks or so and play a role reversal i.e. act like a cartel,  do you think the banks would raise the interest rates at a more juicy level. Or it doesn’t work like that. What say you?

 

eskbanker

Assuming you're meaning 'savers' rather than 'investors', it doesn't work like that!  What gives you the impression that there's a significant volume of cash sitting on the sidelines waiting to be deposited?

mebu60

Chasing best rates (as we do) is a better tactic imo.

But realistically I expect that 'we' (on here) have a combined holding that barely registers. 

Thumbs_Up

The impression I’m getting is banks want more of our money hence the increase in fixed savings rates. People are always coming off fix rates, BTL are selling their properties like hot cakes... Savers or investors - You Say Tomato, I Say Tomato.

 

eskbanker

Thumbs_Up said:

The impression I’m getting is banks want more of our money hence the increase in fixed savings rates. 

In general they're not desperate enough to pay over the odds and will simply calibrate rates according to what's happening in the market.  There are obviously exceptions such as new entrants like Chase and Marcus who wanted to establish a UK market presence from scratch and priced their initial products accordingly.

Thumbs_Up said:

People are always coming off fix rates, BTL are selling their properties like hot cakes...

Sure, but (without sourcing stats) I suspect that the amount newly deposited into savings accounts in any given month will probably be no more than a couple of percent of the total already in the (collective) coffers.

Thumbs_Up said:

Savers or investors - You Say Tomato, I Say Tomato.

I only say tomato if that's what I'm actually meaning to refer to

jaypers

I’ve seen first hand the sums of money that pass through Bank systems on a daily basis. Private savings are but a tiny drop in the ocean. Most people have no idea. 

Thumbs_Up

jaypers said:

I’ve seen first hand the sums of money that pass through Bank systems on a daily basis. Private savings are but a tiny drop in the ocean. Most people have no idea. 

Not exactly small beer though is it.

“Recent UK savings statistics for 2022 from the Bank of England (BoE) indicate that in the year up to October, people deposited £55.1 billion into UK banks and building societies. Approximately £3.6 billion of this was into National Savings and Investment (NS&I) accounts”

https://www.money.co.uk/savings-accounts/savings-statistics

Johnjdc

Thumbs_Up said:

jaypers said:

I’ve seen first hand the sums of money that pass through Bank systems on a daily basis. Private savings are but a tiny drop in the ocean. Most people have no idea. 

Not exactly small beer though is it.

“Recent UK savings statistics for 2022 from the Bank of England (BoE) indicate that in the year up to October, people deposited £55.1 billion into UK banks and building societies. Approximately £3.6 billion of this was into National Savings and Investment (NS&I) accounts”

https://www.money.co.uk/savings-accounts/savings-statistics

In the context of total monetary aggregate liabilities redeemable at less than 3 months notice of just over £3tn in the UK economy, yes it's small beer.

If you could persuade a quarter of people to move half of their money somehow entirely outside the banking system (where? crypto? shares?) you would require the financial system, for every £100 of existing debt, to find an extra 22p to lend to the banks.

eskbanker

Thumbs_Up said:

jaypers said:

I’ve seen first hand the sums of money that pass through Bank systems on a daily basis. Private savings are but a tiny drop in the ocean. Most people have no idea. 

Not exactly small beer though is it.

“Recent UK savings statistics for 2022 from the Bank of England (BoE) indicate that in the year up to October, people deposited £55.1 billion into UK banks and building societies. Approximately £3.6 billion of this was into National Savings and Investment (NS&I) accounts”

https://www.money.co.uk/savings-accounts/savings-statistics

https://www.bsa.org.uk/statistics/bsa-statistics suggests aggregate UK savings in nearly £2trillion territory, so about £1billion being deposited weekly is indeed very small beer....

Nebulous2

Santander were complaining in their recent results about the difficulty in attracting money. 

QE money helped banks and blunted their competitiveness, but more recently rates have improved and there have been some big moves. 

Still well behind inflation. 

MX5huggy

What do you want me do do? Take cash out of a bank and stuff it under the bed (cats bed I don’t have enough for my bed) until I can get 4% in easy access?