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InlikeFlynn

Will The Nsandi Relaunch Affect Mortgage Lending?

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My apologies if this has been covered before.

As I move the few beans the Flynn family have accumulated from ISAs and deposit accounts with major banks into the latest NS and I index-linked bonds, I can't help thinking that the loss of £2bn in cash deposits must restrict future mortgage lending, or have I got this wrong?

Flynn

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Not sure. However, I will say that every single person in this country with a big chunk of cash on long term deposit has now had several years to relfect on how they have been fecked over by the baks and BSs, and that there is no other sensible place to put their cash This is pretty much unprecedented in recent history, AFAIK, si I reckon we are going to see a massive flight of cash from deposit accounts and cash ISAs for as long as the certs remain available and IRs remain way below inflation. The affects of that cash flight? Dunno.....:unsure:

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As far as I can see there is no good reason NOT to take your savings out of the bank and put them in NS&I, unless you intend to spend within one year. And even then I'd do it just to piss off the banks. B)

Hopefully NS&I will get more than the £2bn they are aiming for.

I've already noticed other organisations raising their game. NR is offering a 4.5% ISA. They weren't doing that a few weeks ago.

Edited by Nationalist

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As far as I can see there is no good reason NOT to take your savings out of the bank and put them in NS&I, unless you intend to spend within one year. And even then I'd do it just to piss off the banks. B)

Hopefully NS&I will get more than the £2bn they are aiming for.

I've already noticed other organisations raising their game. NR is offering a 4.5% ISA. They weren't doing that a few weeks ago.

Where about, ISA rates still look poo on the NR website.

I may need my money out in the next year but I'm agrunteed to loose money if I dont gte a couple of bonds so I'm going for the NS&I route as I see the risk of me taking the money out as a lot less thna the risk of inflation

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As far as I can see there is no good reason NOT to take your savings out of the bank and put them in NS&I.

Apart from RPI going negative when the crash kicks in?

I do agree though that this will really hit the bank's capital ratios and they'll have to offer some tasty rates on their savings accounts to get some money in. Maybe they don't care though because the offer will only be temporary until NS&I hit George's target.

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Was going to start a separate thread but this is close enough to the subject...

The Nationwide are already in whinge mode... No doubt all the other high street institutions are whinging as well but don't have any moral high ground in the same sense that the Nationwide does to go and bleat about it....

The Nationwide has attacked National Savings & Investment after the government-backed group launched a product that protects savers from soaring inflation rates. Britain's largest building society believes the NS&I's recent five-year index-linked bond will distort competition in the savings market and siphon money out of the financial system.

Funny enough I had my own bank on the phone last week left a message on both my landline and mobile numbers. I transferred £15,000 from coincidentally the Nationwide to my pers account at Nat West prior to putting it into the NSI bond. The (not so) nice lady at the bank hinted at some sort of fraud going on the message prompting me to call her back quite quickly. Once connected she quickly discounted any problems but tried to explain her remarks by saying any large sum in a card operated account could be at risk. She then made a comment asking if I had any plans for the money. After my remarks about whores and alcohol (and a nervous laugh on her part) she volunteered the fact that the Nat West were themselves operating some 'what she called' awesome interest rates. I laughed out loud suggesting RBS is not an institution I would leave a large sum of money with.... Rather miffed she politely ended the conversation.

The fact that my High Street bank branch (whom I have banked with for 25+ years) calls me out of the blue (when they have never done so before in that 25 years) goes to show how worried they are about savers funds flowing out and into government backed bonds.

And so they fecking should be the shysters....... B)

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Well the banks and building societies should up the ante if they really value their savers custom.....I will tell all who will listen about NS&I. I am glad it is limited to £15k as it lets more people take advantage of helping preserve their hard earned savings, hoping it will be worth the same when they spend it as when they saved it.... ;)

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What's this nonsense about capital reserve ratios. The banks have spent the last decade sidestepping the regulations. And now they aren't lending anyway. And £2bn is feck all. And they don't care about savers either. The bottom line is the banks are never happy.

Mutuals may just have a point.

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Was going to start a separate thread but this is close enough to the subject...

The Nationwide are already in whinge mode... No doubt all the other high street institutions are whinging as well but don't have any moral high ground in the same sense that the Nationwide does to go and bleat about it....

The Nationwide has attacked National Savings & Investment after the government-backed group launched a product that protects savers from soaring inflation rates. Britain's largest building society believes the NS&I's recent five-year index-linked bond will distort competition in the savings market and siphon money out of the financial system.

Funny enough I had my own bank on the phone last week left a message on both my landline and mobile numbers. I transferred £15,000 from coincidentally the Nationwide to my pers account at Nat West prior to putting it into the NSI bond. The (not so) nice lady at the bank hinted at some sort of fraud going on the message prompting me to call her back quite quickly. Once connected she quickly discounted any problems but tried to explain her remarks by saying any large sum in a card operated account could be at risk. She then made a comment asking if I had any plans for the money. After my remarks about whores and alcohol (and a nervous laugh on her part) she volunteered the fact that the Nat West were themselves operating some 'what she called' awesome interest rates. I laughed out loud suggesting RBS is not an institution I would leave a large sum of money with.... Rather miffed she politely ended the conversation.

The fact that my High Street bank branch (whom I have banked with for 25+ years) calls me out of the blue (when they have never done so before in that 25 years) goes to show how worried they are about savers funds flowing out and into government backed bonds.

And so they fecking should be the shysters....... B)

Brilliant! :lol:

When I transferred around £17,000 from savings account to a better one via my current account last month I received a letter two days later asking me to come in for chat about what I should do with it. Too late though is was only there a matter of hours.

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Fascinatiing stories - High street banks all seem to have some sort of automated system that alerts the sales team whenever your current account balance goes above a certain level. They immediately try to (mis)sell you some sort of investment product. I have had exactly the same experience when our balance is (very) occasionally higher than normal.

I wouldn't accord the mutuals any special respect in this regard - they cut their savings rate on the sly just like the banks do. Nationwide are probably one of the worst offenders in this regard. Skipton on the other hand have been great, always keeping their rate there or thereabouts.

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Nationwide are probably one of the worst offenders in this regard.

Agree - 2k of the money we are putting into the certs comes from an old Nationwide savings account we decided to close, on discovering that they were paying us the princely sum of 0.16%.

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Agree - 2k of the money we are putting into the certs comes from an old Nationwide savings account we decided to close, on discovering that they were paying us the princely sum of 0.16%.

"This account may be right for you if you enjoy being involuntarily and suddenly taken from behind, without lubrication or warning, by a sweaty, overweight assistant branch manager."

Edited by General Melchett

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Apart from RPI going negative when the crash kicks in?

I do agree though that this will really hit the bank's capital ratios and they'll have to offer some tasty rates on their savings accounts to get some money in. Maybe they don't care though because the offer will only be temporary until NS&I hit George's target.

NS&I certificates are protected against deflation. The RPI-linking never goes below zero and the lowest possible return is +0.5% pa provided you hold for 5 years.

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Where about, ISA rates still look poo on the NR website.

I saw 4.5% in a newspaper advert within the last week or so. The website may not have been updated yet.

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Has anyone actually got any money into these relaunched certificates yet? I applied online ten days ago still no paperwork through and no charge to my debit card.

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Has anyone actually got any money into these relaunched certificates yet? I applied online ten days ago still no paperwork through and no charge to my debit card.

Talking to people I know who've applied the paperwork is taking 10 days or more to turn up

Presumably, they're busy

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Has anyone actually got any money into these relaunched certificates yet? I applied online ten days ago still no paperwork through and no charge to my debit card.

I applied online. It took around a week before they took the money.

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I saw 4.5% in a newspaper advert within the last week or so. The website may not have been updated yet.

The latest smokin' hot 'limited issue' deal from Yorkshire BS has just landed in my inbox...

3.7%pa gross till June 2013 - 'Withdrawals or early closure not permitted during the term of the bond

Mutuals are nice in principle and they have the potential to own the residential mortgage and savings market. However, they haven't worked out too well in practice in recent years

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Talking to people I know who've applied the paperwork is taking 10 days or more to turn up

Presumably, they're busy

Cheers. Well, that says something.

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Has anyone actually got any money into these relaunched certificates yet? I applied online ten days ago still no paperwork through and no charge to my debit card.

I applied online yesterday and the money went from my current account in around 1 hr. :-)

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Has anyone actually got any money into these relaunched certificates yet? I applied online ten days ago still no paperwork through and no charge to my debit card.

I received my certificate yesterday. I applied on day one!

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I can't help thinking that the loss of £2bn in cash deposits must restrict future mortgage lending, or have I got this wrong?

Probably not significantly. There is normally a decent differential between savings and borrowing, I think Nationwide has £120bn savings and £150bn in loans, so £2bn is a drop in the ocean. Also for the loans they will use some leverage especially for any tracker/fixed rate loans.

Also not many people are aware of NS&I. Everyone I tell is totally unaware of it. And then they gather £15K together :)

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Has anyone actually got any money into these relaunched certificates yet? I applied online ten days ago still no paperwork through and no charge to my debit card.

Applied for four lots, one for each of the family. Two for kids paid for with cheques. Both cheques cashed but only one cert has arrived. My wife's cert has arrived. They took the money almost immediately. They've now taken the money for mine but the cert hasn't arrived.

All applied for over a week ago.

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I received my certificate yesterday. I applied on day one!

I applied on day one and got my certificate back early on in the week (maybe having an existing account helps?)

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I applied on day one and got my certificate back early on in the week (maybe having an existing account helps?)

I applied last week and got the certificate within a few days. I'm also an existing customer and I guess this speeds things up considerably because they don't have to ask you for proof of address and other anti-money-laundering shenanigans.

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