B&B hit by sub-prime losses

tawse57

Wurz, can you let mek now the name of the Lloyds 6% 6 month deal please. Is this it:

http://www.lloydstsb.com/savings/term_deposit.asp

EdInvestor

Rafter wrote: »

Bradford & Bingley were a building society but are now a mortgage bank.....

....they have lost a lot of money....they are still a well capitalised profitable bank....

Well quite :rolleyes:Depositors should just make sure they don´t exceed the 35k guarantee if they are worried.

There´s far too much hype written about the banks these days by people who can´t tell a loss from a reduction in profit and think a fall in the share price might have some effect on a bank´s ability to do business.

[Deleted User]

Biggles wrote: »

But underlying profit before tax up 5% and total dividend up 5%.

With the declared dividend yield now being 12%ish you wonder why people bother saving when they can simply own the bank and get twice the return.

:beer:

Wurz

Tawse57,

Thanks for the link to Lloyds, it's going to save me a wasted journey tomorrow. I've just been on the 'phone number listed and it seems that the 6% only applies on a min deposit of £2k to a max of £20k. They do others, but all at 5%.

One does despair of the quality of information at branch level! We would have made the journey in to be told our £90k is too much! Perhaps B&B's or Alliance & Leicester will get our dosh after all.

Wurz

Nice to see EdInvestor on this post, have found his comments very useful on other threads, and usually a calming influence on some of the more doom & gloom posts.

Ed, do I take it from your comments that B&B's is still a viable option. Must confess that I have had good customer service from them over the past 25+ years.

tawse57

Wurz, I would spread it around if I was you. Also consider the likes of First Direct which, although not a chart topping rate, is supposedly very safe re it being a HSBC bank.

Are you looking at instant access accounts or some kind of 6 or 12 month bond? Just curious.

geepster

EdInvestor wrote: »

Well quite :rolleyes:Depositors should just make sure they don´t exceed the 35k guarantee if they are worried.

There´s far too much hype written about the banks these days by people who can´t tell a loss from a reduction in profit and think a fall in the share price might have some effect on a bank´s ability to do business.

I quite agree. :T

bristolleedsfan

Yant1 wrote: »

With the declared dividend yield now being 12%ish you wonder why people bother saving when they can simply own the bank and get twice the return.

:beer:

Saving with the bank doesnt result in any losses on deposits, whereas buying shares in a bank can result in losses made on the investment.

B+B share price is now at a year 2000 low, actually worth less to a lot of people that received free shares on demutalisation than NR shares are cos NR gave out double the amount of shares. ( to at least those with minimum qualifying balances)

tradetime

Yant1 wrote: »

With the declared dividend yield now being 12%ish you wonder why people bother saving when they can simply own the bank and get twice the return.

:beer:

Erm perhaps because the lump that you had "deposited" in the stock would have shrank by 23% today, take a little while to get that back by dividend, never mind ern interest

Wurz

Tawes57, not worried about instant access, just a regular monthly income to supplement the housekeeping budget. Would be more interested in yearly or even two yearly fixed rates, if the rate was good, but it seems the better rates are on the 6 & 12 month accounts.

May be tempted to put £20k with Lloyds (as that is their upper limit with the 6 month rate) and £70k (in joint names) into either the B&B 6 month @ 6.5% or the yearly one @ 6.2%. Just so happens that both these places are next door to each other on my local high street.