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I`m getting a bit concerned about the possibility of bank runs, and worse, bank failures in the UK. My own STR fund is more than the FSCS limit and I`m scratching my head about where would be the safest place. The options seem to be 1) nationalised banks, I¨m with Lloyds and NR but have to wonder just how reliable even that is in the face of government default. 2) overseas deposit 3) parking it in gold 4) treasuries (see 1) 5) tax credits.

Any suggestions?

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I`m getting a bit concerned about the possibility of bank runs, and worse, bank failures in the UK. My own STR fund is more than the FSCS limit and I`m scratching my head about where would be the safest place. The options seem to be 1) nationalised banks, I¨m with Lloyds and NR but have to wonder just how reliable even that is in the face of government default. 2) overseas deposit 3) parking it in gold 4) treasuries (see 1) 5) tax credits.

Any suggestions?

Can't you just spread it around multiple banks keeping each deposit under the FSCS limits? Or is your STR fund too big for that?

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I am not a financial adviser and I am not giving investment advice.

I am just telling a story about my own situation.

I am 100% in cash in several different institutions, all of which are covered by FSCS or are themselves part of the state (NS&I). I've always been wary about gold, as it has been massively volatile - also don't know what happens if it is stored in a bank's safe deposit box and the bank fails. I would probably be well advised to buy some gold, but I haven't done so yet. There is apparently nothing like enough money in the FSCS fund to cover even 2 of the top 10 banks in the event of failure, but I believe the Govt and BoE would print money to top up the fund. This may turn out to be a naive belief, however.

I also opened a dollar deposit account with HSBC, but they don't pay any interest at all - it's basically a bet on a rising dollar against the pound, and there is a wide spread between their bid/offer prices - basically a term deposit will lose around 5-7% per year due to charges, inflation and lack of interest being paid unless the dollar appreciates by a similar margin - question of probability. I now may have missed the boat to make further transfers given the recent exchange rate slide, although I suspect the pound will go lower still. Also, not sure re: Forex accounts and FSCS - the HSBC person told me that it was covered, but she seemed rather clueless, so a bit of research is required. I understand that HSBC is the most solid of the UK high street banks, but that's a bit like saying that Amsterdam is the highest place in Holland.

Hope that is useful, but I suspect you knew most of that already (i.e. the general info, and not my personal situation!).

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I will look after it for you.

Seriously though, I'm in a similar situation as you although my savings are under the FSCS threshold. I am still worried about a bank going under and having to wait months to get my money so I've put 10% into gold. The rest I have spread around into 4 different bank accounts between me and my partner.

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I am not a financial adviser and I am not giving investment advice.

I am just telling a story about my own situation.

I am 100% in cash in several different institutions, all of which are covered by FSCS or are themselves part of the state (NS&I). I've always been wary about gold, as it has been massively volatile - also don't know what happens if it is stored in a bank's safe deposit box and the bank fails. I would probably be well advised to buy some gold, but I haven't done so yet. There is apparently nothing like enough money in the FSCS fund to cover even 2 of the top 10 banks in the event of failure, but I believe the Govt and BoE would print money to top up the fund. This may turn out to be a naive belief, however.

I also opened a dollar deposit account with HSBC, but they don't pay any interest at all - it's basically a bet on a rising dollar against the pound, and there is a wide spread between their bid/offer prices - basically a term deposit will lose around 5-7% per year due to charges, inflation and lack of interest being paid unless the dollar appreciates by a similar margin - question of probability. I now may have missed the boat to make further transfers given the recent exchange rate slide, although I suspect the pound will go lower still. Also, not sure re: Forex accounts and FSCS - the HSBC person told me that it was covered, but she seemed rather clueless, so a bit of research is required. I understand that HSBC is the most solid of the UK high street banks, but that's a bit like saying that Amsterdam is the highest place in Holland.

Hope that is useful, but I suspect you knew most of that already (i.e. the general info, and not my personal situation!).

This is also in no way investment advise but follow the above approach at YOUR OWN PERIL. Being fully invested in ONE THING is not a good idea IMO. Speak to any DECENT financial advisor and they will discuss minimising your risk (exposure to a single market).

If we have a bank run on a large bank the government cannot guarantee without MASSIVE printing. Massive printing will devalue the very thing they are trying to protect.

If you are serious about protecting your cash and reducing your risk then invest in different things; I am not going to tell you what different things to invest in as it's as much to do with your personal circumstances as anything else but I don't see what harm you can do in a small proportion of it being a hedge against hyperinflation and that in turn is likely to mean a small amount of your holding being in physical gold. IMO that needs to be IN YOUR HANDS and not in some vault somewhere else.

My investments are spread between stocks, cash, index linked bonds (NS&I), property (the one I live in), physical gold and various other collectables.

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I`m getting a bit concerned about the possibility of bank runs, and worse, bank failures in the UK. My own STR fund is more than the FSCS limit and I`m scratching my head about where would be the safest place. The options seem to be 1) nationalised banks, I¨m with Lloyds and NR but have to wonder just how reliable even that is in the face of government default. 2) overseas deposit 3) parking it in gold 4) treasuries (see 1) 5) tax credits.

Any suggestions?

While i can understand your concerns you have to see that there is hardly any risk of a bank failing and you losing your cash.

They simply could not let that happen otherwise there would be a run on every bank and that would be it - over.

Fact is that they will put as much money into the banks as they need to- its what will your money be worth long term, that is imo the real question.

However like most here, we are all looking at our money`s purchasing power relative to one asset - property.

Fwiw- i have topped up on a lovely little gold prospector company!

GL anyway.

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I cant say that you can dismiss that advice so lightly.

I have just withdrawn £200 cash today as part of my own little bank run. No point in having an overdraft if you cant get at the cash when you need it I say.

If we have a bank run then your cash isnt going to cut it.

There is NO DANGER of a bank run leading to bank collapse - only in the heads of some people on this website who have too much free time on their handS!

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NS&I Easy Access account.

No interest to speak of but easy to get access to funds. Government savings, so should be relatively secure.

I think it is called a Direct Saver now.

It pays around 1.6% if I recall correctly, and it pays it gross of income tax, so you may need to fill out a tax return.

They do an ISA at around 2.5%, probably best to put money in there before the Direct Saver if you don't have a cash ISA - higher IR and no tax liability.

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I think it is called a Direct Saver now.

It pays around 1.6% if I recall correctly, and it pays it gross of income tax, so you may need to fill out a tax return.

They do an ISA at around 2.5%, probably best to put money in there before the Direct Saver if you don't have a cash ISA - higher IR and no tax liability.

1.75% gross/AER.

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RBS, Lloyds, Barc all are as good as each other.........

If it ever gets to a stage where one and all of them fall over then what becomes of your STR fund will be the last thing on your mind...

Your first priorities in such a situation will be food and protection for your family!!

Wouldn't touch Santander though...... Whilst it does come under the umbrella currently if things do turn nasty then protectionist measures and the pulling up of drawbridges could leave them out in the cold. Ask yourself would the Spanish Government give the same guarantees and would you trust it?

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1.75% gross/AER.

Cheers Bruce.

Not the best, but not the worst either.

If they were still doing them, I would say the Index Linked Certs, which are tax free, assuming he/she can tie up their cash for a year.

But they aren't so he can't.

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Where do Cameron, Osborne and the rest on Millionaires' Row keep their money? The answer to that question would be priceless.

Millionaires have a balanced portfolio, cash, stocks/shares/currencies and property as the biggest inflation hedge as-well as a good chunk of debt because some leverage is required to stop your wealth being eroded

Edited by AteMoose
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If we have a bank run then your cash isnt going to cut it.

There is NO DANGER of a bank run leading to bank collapse - only in the heads of some people on this website who have too much free time on their handS!

Yes, such a scenario would be absolutely unthinkable - cloud cuckoo land stuff, eh?

'Uk was hours away from Bank Shutdown - Guardian'

UK was hours from bank shutdown

FSA ready to close cash machines during crisis

Larry Elliott and Jill Treanor

The Observer, Sunday 6 September 2009

Article history

Britain was within hours of a banking shutdown last autumn as the government battled to piece together a rescue plan for the stricken Halifax and Royal Bank of Scotland, it has emerged.

Treasury mandarins and Bank of England officials battled the clock to come up with a support package on the weekend of 12 October. If they had failed, the Financial Services Authority could have ordered the closure of cash machines and prevented deposits at either of the two main casualties of the global financial chaos.

..

Our investigation into the weekend that saved the UK banking system from collapse revealed that RBS had been on "life support" from the Bank of England since the previous Tuesday. According to government sources, Threadneedle Street took aggressive action to ensure RBS had the billions it needed to keep operating on a day-by-day basis after other banks refused to lend the Edinburgh-based bank money. RBS was depositing assets at the Bank of England in return for crucial funding

:lol::lol::lol::lol:

Great to have people with your obvious knowledge and savvy around, to provide an alternative view.

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This is also in no way investment advise but follow the above approach at YOUR OWN PERIL. Being fully invested in ONE THING is not a good idea IMO. Speak to any DECENT financial advisor and they will discuss minimising your risk (exposure to a single market).

If we have a bank run on a large bank the government cannot guarantee without MASSIVE printing. Massive printing will devalue the very thing they are trying to protect.

Not many people see cash as an investment, viewed more as a store of wealth, which in a sane world it would be.

Sadly we are all investors now and the seas we swim are infested with sharks (Banksters). Nothing is safe, not even Gold, that could be driven to $500 tomorrow with enough naked shorts taken out on it. Best one can do is diversify and try buy into some good value, say the FTSE100 goes to 3500 in a couple of weeks, it may go lower buy from a value point of view it's not bad at all. Some currencies have shifted back into better value, although I wouldn't describe them as good, CAD and AUD for example are quite a bit off their highs against USD.

Some advise for anyone investing in different currencies, Oanda (Forex) are now in the UK, their spread is extremely tight, not like the robbery of HSBC and the like, plus I believe they are now covered under the FSCS. Sub accounts can be opened in all kinds of currencies allowing one to split their Sterling up into different currencies of their choice. It's easy peasy shuffling money from one sub account to another with Oanda, just don't be tempted to trade as 99% of people who try forex trading blow their entire account.

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  • 433 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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