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Should People Remove Their Money From High Street Banks?

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High street banks are taking the mickey with pathetically low saving rates while charging ridiculous mortgage rates.

Fight back by moving your money to supermarket banks such as Tesco & Sainsburys who don't do mortgages.

Tesco is 3% variable instant access inc 1.75% bonus for 12 months interest is annual

Sainsburys Easy Saver currently 2.8%, guaranteed to be at least 2% above base rate for a year but only up to 5 withdrawals interest is monthly or annual (another account is 3% variable)

Supermarkets have money coming in every day and no existing dodgy mortgage debt.

Tesco and Sainsburys now have their own FSCS licences for the £50k. Tesco bought themselves out of RBS and Sainsburys used to be badged with HBoS.

Particularly if you have STR's why let the banks use your money to feed mortgage supply while paying you rubbish interest rates?

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Errm... you need to know a bit more about the banks.

Sainsburys Bank now owned by Lloyds Banking Group. It was put under a seperate licence (after being merged into one - what fun that was) as there was a run on deposits due to the 50k limit. But it's still Lloyds.

Tesco is not yet a clearing bank, and uses RBS to clear and settle for them. So, if RBS were to go under, although your funds would be "safe" you would still not be able to transact through the bank, leaving you high and dry. This will change over time, though, as I believe Tesco is planning to build a "proper" bank.

Personally, I wouldn't worry too much about who owns who... I would just look at the best rates and spread your money around.

T.I.M

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While I am no fan of the banks, I hardly think putting your money into (and thus supporting) a nasty organisation such as Tesco is a great answer.

Broon would prefer you spent it all, which appears to be the answer for our topsy-turvy country.

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Errm... you need to know a bit more about the banks.

Personally, I wouldn't worry too much about who owns who... I would just look at the best rates and spread your money around

You could be right.

I knew Sainsburys used to share the HBoS FSCS licence but thought they had now gone alone.

I've noticed the Tesco site still has a reference to RBS in the address bar but where is the money kept? For Tesco or RBS use?

Re rates they aren't bad compared to some places and if you are spreading money around who owns who is important isn't it?

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The buyouts by the retailers are what should have happened. In a capitalist world, a company in trouble (like RBS or HBoS) raises money by selling off assets where a good buyer can be found. A more healthy business (like Tesco or Sainsburys) takes the opportunity to negotiate a good deal for itself. Everyone gains, and the taxpayer never had to get involved!

Though of course after the Northern Rock bailout the whole market was buggered, so any such deal would've been a whole lot less attractive for all parties. And there's the separate question for the banks over the sheer size of their deficits.

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Errr... why do you think they are taking deposits... SO THEY CAN OFFER MORTGAGES AND MAKE MONEY LIKE THE BANKS DID ONCE UPON A TIME!!

:rolleyes:

I dont think supermarkets are going to start offering mortgages some how. Why not move to a supermarket account, you trust them with your food , why not your money too.

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I dont think supermarkets are going to start offering mortgages some how. Why not move to a supermarket account, you trust them with your food , why not your money too.

OK, let's have a bet on it. However big or small you like. Tesco will try to buy Northern Rock's good bank and then offer mortgages.

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OK, let's have a bet on it. However big or small you like. Tesco will try to buy Northern Rock's good bank and then offer mortgages.

indeed. They do everybloodything else so why not mortgages.

Of course you won't be "eligible" if your Clubcard history says no (3litre bottles of value-range cider etc....)

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indeed. They do everybloodything else so why not mortgages.

Of course you won't be "eligible" if your Clubcard history says no (3litre bottles of value-range cider etc....)

But if you are eligible may be they offer Double ClubCard points and a free trip to Disney Land Paris.

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As mentioned above, the supermarkets do not really have banks at all, but rather white label accounts from the other banks. In other words, they take an RBS account or whatever, tippex over the bank name and write "Tesco Bank" at the top. Your money, other than £50000, is dependent upon the security of Tesco Bank, which it itself dependent upon the bank they use to provide the accounts and clearing services.

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High street banks are taking the mickey with pathetically low saving rates while charging ridiculous mortgage rates.

Fight back by moving your money to supermarket banks such as Tesco & Sainsburys who don't do mortgages.

Tesco is 3% variable instant access inc 1.75% bonus for 12 months interest is annual

Sainsburys Easy Saver currently 2.8%, guaranteed to be at least 2% above base rate for a year but only up to 5 withdrawals interest is monthly or annual (another account is 3% variable)

Supermarkets have money coming in every day and no existing dodgy mortgage debt.

Tesco and Sainsburys now have their own FSCS licences for the £50k. Tesco bought themselves out of RBS and Sainsburys used to be badged with HBoS.

Particularly if you have STR's why let the banks use your money to feed mortgage supply while paying you rubbish interest rates?

...are the supermarkets' customers deposits covered by the Government guarantee scheme similiar to the Banks....?.....first thought should be protection of capital..... if they are then it would seem sensible to transfer to them ....would like to know....Tescos PF is separate from RBS now I am sure.... <_<

Edited by South Lorne

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And could other posters refrain from beginning with "Erm.. Er.. " etc.

The hallmarks of an absolute w**k**.

"Errr....ummm.. er..... are you stupid or something?" :lol:

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How about a credit union? Your money would be just as safe, but it is out of the grubby mitts of the bankers.

Nice idea but incorrect. I volunteered for a credit union and all the deposits were put in the Co-op Bank. (not in the safe!)

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