Saturday, Sep 22, 2007
Sounding the death nell for NS&I
Times: £100,000 guarantee to cover all savers
Alistair Darling is planning to guarantee people’s savings held in any bank or building society account up to £100,000 in an overhaul of the financial system designed to prevent a repeat of the Northern Rock fiasco.
Posted by uncle chris @ 09:31 AM (747 views) Add Comment
7 Comments
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1. alan said...
Q: Why the haste to push the guarantee up to 100k
Official answer: It was "logical" for savers with more than £33,000 to rush to take it out, its governor Mervyn King told MPs this week (BBC reporting).
So what is wrong with savers separating their cash and investing in 20 banks? That guarantees £660,000.
(VI pressure, I sense).
2. sirgoogle said...
Just goes to prove the 100K in saving is not really very much nowadays - especially those who have timed the market and have sold to rent.
3. confused76 said...
Good news for us! It will incentivise savings into building society bonds (at 1% premium versus BoE base rate) instead of investing in property
4. Tulipmania said...
Yes anything which encourages saving is a good thing, and it would be very unfair if savers were the ones to suffer due to banks going bust because of other people taking excessive risks to buy property.
5. daft boy said...
It really is long overdue. With banks amalgamating these days it would be easy to get caught in a bank group problem and find that 33k compensation actually applys to the group and not each individual bank within the group.
6. paolo88888 said...
Alan,
Are your really going to remember 20 online logins, 20 paswords, make 20 separate entries on your tax return, and have some of your money invested in the bank offering the 20th best interest rates?
If you have a full time job to do, I would suggest no more than four banks.
I think the idea of 100% gurarantee is wrong. The present 90% guarantee means the consumer does have a stake in how sound the bank is and therefore the banks have an incentive to conduct there business well to attract customers.
7. sara said...
Between me and hubby we have a fair few accounts to keep it under the 30K. You don't need to be constantly looking at it so having that many passwords isn't that bad and you can buy encrypted password saver software that takes the hassel out of it.
I've often wondered why it was 90% - I agree it should stay that way.