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TheCountOfNowhere

Households Raid Savings At Record Rate

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Apologys if this has already been posted.

http://news.sky.com/story/1176798/households-raid-savings-at-record-rate

"Households are pulling money out of their savings accounts at the fastest rate in modern record, according to Bank of England figures.

In the past year, families have withdrawn £23bn from their long-term savings accounts to convert into cash and put into current accounts - the equivalent of around £900 for every household in the country."

Maybe we have the reason the FLS scheme has been pulled.

A lot of people might well live to regret spanking their savings.

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Apologys if this has already been posted.

http://news.sky.com/story/1176798/households-raid-savings-at-record-rate

"Households are pulling money out of their savings accounts at the fastest rate in modern record, according to Bank of England figures.

In the past year, families have withdrawn £23bn from their long-term savings accounts to convert into cash and put into current accounts - the equivalent of around £900 for every household in the country."

Maybe we have the reason the FLS scheme has been pulled.

A lot of people might well live to regret spanking their savings.

Apparently its coz we're confident about the recovery - or so says the Telegraph's pet stockbroker (do those still exist?)

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Many savers have quickly cottoned on that it no longer pays to save anything, the faster you save the quicker it gets taken from you by inflation, erosion and tax.....pay a pittance and tax you a second time, one when you earn it then when you save it....savers are scum and should be penalised and pay heavily for their forward planning and self reliance.......Oh well, when it is gone it is gone.....more dependant mouths to feed clothe and house.....want it, get it. ;)

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It's the logical thing to do I think. Either enjoy what you've saved or watch it being eroded by pitiful interest rates and inflation.

With no hope of getting a decent return on their savings, I'm sure many people are thinking they may as well enjoy what they've got stashed away...

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Many savers have quickly cottoned on that it no longer pays to save anything, the faster you save the quicker it gets taken from you by inflation, erosion and tax.....pay a pittance and tax you a second time, one when you earn it then when you save it....savers are scum and should be penalised and pay heavily for their forward planning and self reliance.......Oh well, when it is gone it is gone.....more dependant mouths to feed clothe and house.....want it, get it. ;)

I totally agree :lol:

However, it sounds to be like the Banks/B.S. suddenly realise they are down £23,000,000,000...oops.

Is that enough to collapse a bank ?

Ahhh, I miss those days when £1,000,000,000 was considered a lot of money.

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It's the logical thing to do I think. Either enjoy what you've saved or watch it being eroded by pitiful interest rates and inflation.

With no hope of getting a decent return on their savings, I'm sure many people are thinking they may as well enjoy what they've got stashed away...

I worked out last week I was better off stashing 40% of my savings in Zopa and keeping 60% of it under my bed !!!!

It looks like a good bet to actually do this !!!

Edited by TheCountOfNowhere

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I totally agree :lol:

However, it sounds to be like the Banks/B.S. suddenly realise they are down £23,000,000,000...oops.

Is that enough to collapse a bank ?

Ahhh, I miss those days when £1,000,000,000 was considered a lot of money.

I remember when £1,000,000 was considered a lot of money!

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It's the logical thing to do I think. Either enjoy what you've saved or watch it being eroded by pitiful interest rates and inflation.

With no hope of getting a decent return on their savings, I'm sure many people are thinking they may as well enjoy what they've got stashed away...

True to a point.....but does spending savings for the sake of it mean enjoying yourself......maybe people are thinking ahead to when they can no longer work and preparing to provide their own buffer or safety net, not having to depend on others ie social services, benefits, family etc......maybe they are taking their money out the country, buying precious metals or other valuables they think might go up, or putting it under the mattress or buying stocks and shares, bricks, land or even bitcoin !!.....one thing it is showing is that faith with our cash money and the future value of fiat money is rapidly declining....I wonder why? ;)

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I remember when £1,000,000 was considered a lot of money!

I remember when you could buy a pint for 79p. I was charged £9 for two pints at the weekend....I wont be going to ANY pub every again.

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....I wonder why? ;)

Low interest rates and support of the banking system

Put rates at 6%, stand back and let the free market correct itself and balance out.

Then we can all get on with out lives.

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Many savers have quickly cottoned on that it no longer pays to save anything, the faster you save the quicker it gets taken from you by inflation, erosion and tax.....pay a pittance and tax you a second time, one when you earn it then when you save it....savers are scum and should be penalised and pay heavily for their forward planning and self reliance.......Oh well, when it is gone it is gone.....more dependant mouths to feed clothe and house.....want it, get it. ;)

+1

Add to this the fact that should a saver ever experience unemployment, redundancy etc then they can forget about getting any government assistance.

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+1

Add to this the fact that should a saver ever experience unemployment, redundancy etc then they can forget about getting any government assistance.

Or apply for Tax Credits...

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"Raid" conjures up imagery of a consious "Sod it, I'm buying a dunebuggy" decision. Surely the reality is more about gradual erosion of purchasing power over several years resulting in the necessity to use savings to cover a shortfall. The danger is that the rate continues for an extended period, unless wage inflation picks up seems people might be getting poorer still in future.

Edited by The B.L.T.

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I remember when you could buy a pint for 79p. I was charged £9 for two pints at the weekend....I wont be going to ANY pub every again.

£1.35 a pint in our workmans club in the North East,,,)

You can get a house for £50k as well.

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I remember when you could buy a pint for 79p. I was charged £9 for two pints at the weekend....I wont be going to ANY pub every again.

You can still get a decent pint in a can for 79p.

I've converted almost all of my savings into real stuff. I bought what I consider to be capital goods (stuff that produces long-term returns/savings). I couldn't resist spending about 1% on consumer purchases.

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It could be even more straightforward than that. Taking money out to buy homes?

Of course that means someone else gets the money...but we also have 'leakage' in terms of stamp duty and imports.

The land registry sales volumes says:

bygraves_duhduhh.jpg

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This is the most bearish news I've seen in a long time.

Things must be getting desperate for savings drawn down on this scale (the fastest for 40 years!).

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This is the most bearish news I've seen in a long time.

Things must be getting desperate for savings drawn down on this scale (the fastest for 40 years!).

It does say something and as I said earlier maybe it's the reason for the end of FLS, £23B out of an industry short on liquidity has got to be a problem.

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There's no point sweeping your money out of your current account into your savings account these days. I hold a lot more money in my current account than I used too.

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+1

Add to this the fact that should a saver ever experience unemployment, redundancy etc then they can forget about getting any government assistance.

...this is true, so all these savers must be saving the country a fortune. ;)

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There's no point sweeping your money out of your current account into your savings account these days. I hold a lot more money in my current account than I used too.

Absolutely. Reading between the lines, there might be nothing more sinister going on then savers withdrawing from 'savings' accounts paying 2%, and whacking their deposits into multiple Lloyds Vantage and Santander 1-2-3 current accounts paying 3%. I know I've done that. I have spent a bit too, relatively for me anyway, but it is a drop in the ocean compared the savings total.

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Someone on Sky makes a good point.

If the savers are having to withdraw cash from savings accounts just to live....what are those without savings doing !!!

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I wonder how Manny people of given up with banks and just have tin under the floor boards with savings in.

No interest so no point and you might as well keep it from where the government don't know about it so you can claim benefits if you lose your job.

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People aren't necessarily spending it.

I noticed I had £20k in my deposit account earlier in the year so took £10k out straight away as it's losing money in real terms sat there, it's gone into other investments and I would expect most people with cash deposits to think the same way.

And of course nobody will be currently choosing to "invest" their money in deposit accounts so the slide in banks' cash reserves will continue until they finally realise that the only way to stop it is to put up their savings rates substantially.

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