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Realistbear

5.4 Billion Withdrawn From Ing Bank

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http://www.thisismoney.co.uk/saving-and-ba...mp;in_page_id=7

Savers pull £5.4bn from ING Direct
Sascha Hutchinson, This is Money
8 August 2007
Customers have pulled more than
£5.4bn from ING
Direct in the past year, as the backlash against its poor savings rate continues.

Can banks afford to pay more with so much risk in the market? Symptomatic of what we see going on in the credit market collapse.

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I noticed this a while ago.

I can't decide if it means they are playing very safe and trying to push money out as they cannot find a way to make a profit on it - or what?

Add this to the USA scares and I then wondered if, conversly, the most attractive UK savings rates were indicative of firms desperate for money to cover bad lending policies.

Which UK B Socs are least at risk of defaults?

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I noticed this a while ago.

I can't decide if it means they are playing very safe and trying to push money out as they cannot find a way to make a profit on it - or what?

Add this to the USA scares and I then wondered if, conversly, the most attractive UK savings rates were indicative of firms desperate for money to cover bad lending policies.

Which UK B Socs are least at risk of defaults?

Northern Crock is one of the worst for sure.

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I noticed this a while ago.

I can't decide if it means they are playing very safe and trying to push money out as they cannot find a way to make a profit on it - or what?

Add this to the USA scares and I then wondered if, conversly, the most attractive UK savings rates were indicative of firms desperate for money to cover bad lending policies.

Which UK B Socs are least at risk of defaults?

I have wondered this too

A&L have consitently offered headline grabing savings rates, and they are also an aggressive mortgage lender

But then most of A&L's debt is fully collateralised, so bad debt isn't realy their problem. Perhaps high savings rates are indicative of organisations that have been sucsefull in offloading their risk onto the markets? The real suckers are the ones left holding the CDO's

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why do the banks offer anything more than the base rate?

surely the bank can just borrow from the BOE at base rate, why borrow from customers?

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why do the banks offer anything more than the base rate?

surely the bank can just borrow from the BOE at base rate, why borrow from customers?

Banks can set their own interest rates for savers, and they also get a loyal customer that they can then flog other finance products to

Many of the top savings deals are tie-ins; you have to open a current account etc. to get the best savings rates.

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why do the banks offer anything more than the base rate?

surely the bank can just borrow from the BOE at base rate, why borrow from customers?

The BOE pays interest on deposits at the base rate, not the other way round. It doesn't lend on a retail basis. It might lend in an emergency.

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Ha ha ha. I contributed to that 5.4Bn. :lol:

Where did you put it?

(House number, postcode & location of mattress appreciated).

Tw'd be might sad if a FTB lost h/is/er dosh in a building society that went down Cary Street helping BTL's make money!

Is there any way of comparing risks? Fitch and Moody don't seem to provide a list.

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Where did you put it?

(House number, postcode & location of mattress appreciated).

Tw'd be might sad if a FTB lost h/is/er dosh in a building society that went down Cary Street helping BTL's make money!

Is there any way of comparing risks? Fitch and Moody don't seem to provide a list.

ICESave and NS&I Index-linked Savings Certificates.

http://www.icesave.co.uk/

http://www.nsandi.com/products/ilsc/index.jsp

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ICESave and NS&I Index-linked Savings Certificates.

Thanks for that. Never heard of Icesave before. I'll take a look. After BCCI I am perhaps a little less adventurous than I used to be.

Chelsea is giving 6.25 - postal - but with 30 days notice.

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It's by no means the best at the moment, but it sure beats ING.

This is a good place to compare:

http://www.moneysupermarket.com/savings/

Here also :- http://www.fool.co.uk/

But they don't give any clue as to relative risk...... Is ING safer or greedier? Is Chelsea riskier or more generous? Why did ING, as successful as it has been, suddenly start to push investors away?

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Guest Charlie The Tramp
why do the banks offer anything more than the base rate?

surely the bank can just borrow from the BOE at base rate, why borrow from customers?

A lesson I learnt from FreeTrader.

Charlie, I think you need to move away from the idea that banks borrow from the central bank at a base rate and then loan out at rates above this to their own borrowers.

The base rates set by central banks such as the US fed funds rate and primary credit rate (they tend to call the latter the ‘discount rate’, whereas in reality there are several discount rates) are effectively punitive short term rates for borrowing inter-bank, or from the central bank (usually overnight).

These base rates, because of their punitive nature, basically determine short term money market rates, and because of normal risk/reward considerations, will tend to influence longer term rates as well.

Banks don’t borrow from the central bank to lend to customers. They don’t need to. The loans they can make are determined by their reserve holdings with the central bank. Generally the central bank will influence the level of these reserves with open market operations.

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No it didn't push investors away, it was relying on inertia to keep its profits up by us all staying.

Not anymore.

Yes, a typical device, but £5,400,000,000.00? Surely they didn't let all that flow away and not feel it? Why didn't they staunch it by raising rates a bit? I still don't understand it. Nor can I work out if this move makes them safer and less open to a subprime disaster or not.

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