Newcastle building society

tawse57

Anyone have an online account with them? I was reading in the press yesterday that they and Leeds BS have little subprime exposure and apparently fund virtually all their loans from their savings accounts?

bristolleedsfan

tawse57 wrote: »

Anyone have an online account with them? I was reading in the press yesterday that they and Leeds BS have little subprime exposure and apparently fund virtually all their loans from their savings accounts?

That is the case of the majority of the smaller/medium sized Building Societies, these two only appear larger due to the number of the former larger Building Societies having merged or converted to PLC status.

I have a BMW E-Saver which is a Newcastle BS Share Account, latest Netsaver issue is currently better bet on minimum 250.00.

tawse57

Thanks - just opened the Netsaver.

MarkyMarkD

As a saver, why do you care what their funding mix is?

The risk of any saver losing money as a result of the credit crunch is virtually zero. Even if another Northern Rock happened, no saver lost any money.

tawse57

Because in the Japanese crash in the early 1990s Japanese banks were reportedly safe, several went bust and people lost everything despite Govt guarantees. I remember watching a Beeb prog on it.

MarkyMarkD

Well, nobody in the UK is going to lose money as long as they keep their balance under the FSCS limits.

And like I say, even NR savers haven't lost a single penny.

Bernard_Coleslaw

Well done MarkyMarkd, it's something that needed to be said.

The number of people running around worrying about the liquidity ratios of their savings provider over the last few months has been remarkable.

Perhaps in years to come they'll all look back and remember how they got panicked by the media yet again.