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Optobear

April 5th Will Be A Bad Day For The Banks

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So it is that time of year when the tax year draws to a close, and people have to make use of their ISA allowance or lose it.

So my guess is that April 5th (or the 4th because 5th is a saturday) will be a bad day for banks.

If you look back at data from last year:

http://www.hmrc.gov.uk/stats/isa/menu.htm

you can see that the final 3 months of the tax year saw £5.5bn paid into ISAs - with probably most of that in the last few days before the end of the tax year.

My guess is that with the uncertainties surrounding the credit crunch, and rumours about banks, that many people will take cash from banks and deposit it with building societies. That could see a net outflow from the banks to the building societies of perhaps £2bn over a few days? Big money when you're having trouble borrowing cash.

It may well be that other things (perhaps businesses banking cheques before the year end) will compensate and put cash back into the banks, but it seems likely that much more money than in previous years will go out of the clearers into the safer home of building societies.

So will that be a crunch day for the clearers?

Thoughts?

Optobear

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The last few days of April is also a time when people put money into S&S ISAs to use up their allowance.

I think Fidelity used to count on an extra 12bn in the last month.

This money has to come from bank accounts of some kind.

However, I am not sure that they will be pumping into shares right now, much too shaky. Might go into Gilt funds though, or even Gold funds.

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Every day is a bad day for the banks at the moment.

Except today. Bank share prices up 6-15%.

Optobear, I thought you were talking about stocks and shares ISAs to begin with but I guess you're talking about cash ISAs?

I suspect that most people won't give a toss really and it'll be business as usual - that is if anyone actually HAS any money to stick away at the moment. Maybe the Halifax will see a bit of a downturn in business.

Lloyds TSB's current cash ISA campaign is probably doing them very good business at the moment. Amazing, something financial that's advertised on the telly that's actually a good deal. I know I'm up for a piece of it.

If you're talking about S&S ISAs after all I'm wondering where to stick my remaining S&S allowance, might just pass it up this year though. So yeah, you may have a point!

Edited by christh

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Except today. Bank share prices up 6-15%.

Optobear, I thought you were talking about stocks and shares ISAs to begin with but I guess you're talking about cash ISAs?

I suspect that most people won't give a toss really and it'll be business as usual - that is if anyone actually HAS any money to stick away at the moment. Maybe the Halifax will see a bit of a downturn in business.

Lloyds TSB's current cash ISA campaign is probably doing them very good business at the moment. Amazing, something financial that's advertised on the telly that's actually a good deal. I know I'm up for a piece of it.

If you're talking about S&S ISAs after all I'm wondering where to stick my remaining S&S allowance, might just pass it up this year though. So yeah, you may have a point!

You can put it in cash, ready to buy later, if you go for a self select ISA I think. You get taxed at 20%, but there is the prospect of investing it later on. Not sure what the deal is for Higher Rate Tax Payers on that money,

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Except today. Bank share prices up 6-15%.

Optobear, I thought you were talking about stocks and shares ISAs to begin with but I guess you're talking about cash ISAs?

I suspect that most people won't give a toss really and it'll be business as usual - that is if anyone actually HAS any money to stick away at the moment. Maybe the Halifax will see a bit of a downturn in business.

Lloyds TSB's current cash ISA campaign is probably doing them very good business at the moment. Amazing, something financial that's advertised on the telly that's actually a good deal. I know I'm up for a piece of it.

If you're talking about S&S ISAs after all I'm wondering where to stick my remaining S&S allowance, might just pass it up this year though. So yeah, you may have a point!

Help Please,,,,

I am also going for Lloyds cash Isa ( Me and the wife).... How does this work? I have 9k+ and 6k+ in our ING Isa accounts. Can I transfer all 9k+ out and also add another 3600 instantly into the Lloyds account and gain 6.5% on 12k+

( Obviously same with the OH`s Isa) ??????

Think that makes sense.

Sorry for lame question but I am unsure as to wether you can transfer whole amount or just start another Isa and leave the ING ones alone.

:blink::unsure:

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Help Please,,,,

I am also going for Lloyds cash Isa ( Me and the wife).... How does this work? I have 9k+ and 6k+ in our ING Isa accounts. Can I transfer all 9k+ out and also add another 3600 instantly into the Lloyds account and gain 6.5% on 12k+

( Obviously same with the OH`s Isa) ??????

Think that makes sense.

Sorry for lame question but I am unsure as to wether you can transfer whole amount or just start another Isa and leave the ING ones alone.

:blink::unsure:

I think it depends if it is a transfer only or transfer + new money and of course if you have used this year's allowance already.

As the lloyds minimum is over 3k, I think you have to transfer some .

Also this year is still only 3k I think. From april it goes up to 3600. If I am wrong, let me know quick as we can put another 1200 into our ISA account. :)

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I think it depends if it is a transfer only or transfer + new money and of course if you have used this year's allowance already.

As the lloyds minimum is over 3k, I think you have to transfer some .

Also this year is still only 3k I think. From april it goes up to 3600. If I am wrong, let me know quick as we can put another 1200 into our ISA account. :)

I have used up both allowances for this year, next year (April onwards) I understand that the amount allowed is 3600. Yep I want to add another 3600 to both new accounts on the first day allowed in April.

Just want to know how and if this can be done. ING rates have dropped to a 5hitty low for ISA`s and it will be a shame if they are stuck in them.

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Cheers for the suggestion bobthe~. The thought did cross my mind, might be worth it too as I've only £1000 or so left in my 2007/08 allowance which is slightly low for making a purchase with.

Help Please,,,,

I am also going for Lloyds cash Isa ( Me and the wife).... How does this work? I have 9k+ and 6k+ in our ING Isa accounts. Can I transfer all 9k+ out and also add another 3600 instantly into the Lloyds account and gain 6.5% on 12k+

( Obviously same with the OH`s Isa) ??????

Think that makes sense.

Sorry for lame question but I am unsure as to wether you can transfer whole amount or just start another Isa and leave the ING ones alone.

You should be fine transferring both your accounts to Lloyds. You won't be able to add any NEW money (i.e. +£3600) to the Lloyds ISA until 6th April though. Fingers crossed it'll still be open to new money then. You'll need to go into branch to sort all this anyway so have a word with the manager at Lloyds. By the way there's at least one thread on this account in the cash ISAs forum on HPC - may be useful to you.

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Cheers for the suggestion bobthe~. The thought did cross my mind, might be worth it too as I've only £1000 or so left in my 2007/08 allowance which is slightly low for making a purchase with.

You should be fine transferring both your accounts to Lloyds. You won't be able to add any NEW money (i.e. +£3600) to the Lloyds ISA until 6th April though. Fingers crossed it'll still be open to new money then. You'll need to go into branch to sort all this anyway so have a word with the manager at Lloyds. By the way there's at least one thread on this account in the cash ISAs forum on HPC - may be useful to you.

Thanks for your time and advice ;)

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Cheers for the suggestion bobthe~. The thought did cross my mind, might be worth it too as I've only £1000 or so left in my 2007/08 allowance which is slightly low for making a purchase with.

Well I am happy to take the credit, but it was only from a posting by a.steve a few months back.

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Fingers crossed it'll still be open to new money then. You'll need to go into branch to sort all this anyway so have a word with the manager at Lloyds. By the way there's at least one thread on this account in the cash ISAs forum on HPC - may be useful to you.

Why should it not be available to new money then? In the T's and C's it does not say anything about closing deposits into it. And I was planning to do an electronic transfer into it from my current account, to avoid having to queue in the branch. I would have thought this was possible?

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Why should it not be available to new money then? In the T's and C's it does not say anything about closing deposits into it. And I was planning to do an electronic transfer into it from my current account, to avoid having to queue in the branch. I would have thought this was possible?

When I spoke to the bloke at Lloyds about it he was doubtful that it'd still be around in the next ISA year. I protested that the Lloyds website says it'll be open until May 2008, but he gave some weak excuse. I'm hoping he's wrong anyway!

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I walked into a Lloyds branch last week - no apppointment.

Asked to open said ISA.

Nice man filled in forms for me.

Chatted about the Grand Slam win

Transferred 16K from HBOS web ISA

Transferred 3K from A&L web ISA

Was asked if I wanted to put this years 3K in - said that I had already put it into the HBOS one just a few weeks ago. No problem.

Was told that on April 7th I could put another 3.6K into the Lloyds ISA.

Was set up with an online account.

Was told the paperwork would be in the post but that it would be a while as they are inundated for this ISA. They said it might be stopped suddenly so I was wise to open it when I did.

Took my passport, driving photocard licence and a few bank statements in as proof of who I was as I did not have a Lloyds account - they used my driving photocard licence as it had my address on.

Also needed my NI number.

Hope that helps.

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I walked into a Lloyds branch last week - no apppointment.

Asked to open said ISA.

Nice man filled in forms for me.

Chatted about the Grand Slam win

Transferred 16K from HBOS web ISA

Transferred 3K from A&L web ISA

Was asked if I wanted to put this years 3K in - said that I had already put it into the HBOS one just a few weeks ago. No problem.

Was told that on April 7th I could put another 3.6K into the Lloyds ISA.

Was set up with an online account.

Was told the paperwork would be in the post but that it would be a while as they are inundated for this ISA. They said it might be stopped suddenly so I was wise to open it when I did.

Took my passport, driving photocard licence and a few bank statements in as proof of who I was as I did not have a Lloyds account - they used my driving photocard licence as it had my address on.

Also needed my NI number.

Hope that helps.

Perfect answer, I will try the same, probably too late but you never know. Thanks MT :rolleyes:

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My guess is that with the uncertainties surrounding the credit crunch, and rumours about banks, that many people will take cash from banks and deposit it with building societies.

This may be part of the reason why the banks are offering good ISA rates recently. I know Barclays and LloydsTSB both have some "B.S. beating" rates (subject to conditions).

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  • 295 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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