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Nationwide can't cope with demand for ISA transfers as punters abandon dodgy banks...

http://business.timesonline.co.uk/tol/busi...icle4286006.ece

"Nationwide, the UK’s biggest building society, has said that from today it is no longer accepting transfers of cash Individual Savings Accounts (Isas) from other savings groups.

The move follows complaints by savers that they have had to wait months to transfer cash Isas to Nationwide from other banks and building societies.

Nationwide accepts its transfer process has grown more sluggish and blames the delays on the sheer weight of money being switched from other financial groups.

A spokesman said: “In the past few months we have seen a huge increase in the number of Isa transfers we are receiving. They are running at tens of thousands each month - five times the level of twelve months ago - and as a result we have not been able to maintain our normal level of service. So we have decided temporarily to suspend transfers of Isas from other providers while we take stock of the situation.”

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The building societies are clearly a safer place, even nationwide had a relatively low amount of securitisation, most lending was deposit funded. Building societies were some of the first to start turning away mortgage customers dueto high demand, now they're telling depositors to get lost.

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The building societies are clearly a safer place, even nationwide had a relatively low amount of securitisation, most lending was deposit funded. Building societies were some of the first to start turning away mortgage customers dueto high demand, now they're telling depositors to get lost.

It's likely to have a chain reaction though, punters spurned by the Nationwide will likely all target the next biggest building society - a run on the bank in reverse!

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If this is significant (and I'm not saying it's not) what does this actually mean?

Does it mean that savers are wary of banks because of their perilous situation?

If so, are building societies any safer if we are talking monetry collapse?

Would anyone, regardless of who they keep their money with, really get their 35k back in the event of a total breakdown in the banking system?

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It's likely to have a chain reaction though, punters spurned by the Nationwide will likely all target the next biggest building society - a run on the bank in reverse!

Hehe. It'll probably result in lower savings rates, probably below inflation, but better that than losing it all. I'll be keeping my savings in the Nationwide

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If this is significant (and I'm not saying it's not) what does this actually mean?

Does it mean that savers are wary of banks because of their perilous situation?

If so, are building societies any safer if we are talking monetry collapse?

Would anyone, regardless of who they keep their money with, really get their 35k back in the event of a total breakdown in the banking system?

As JohnnyB notes the building societies have much lower levels of securitisation. It's another aspect of the fear which stalks the banking system that the Nationwide is having to shut its doors to new savers - whether that fear is misplaced is another matter.

In the event of a total breakdown of the banking system everyone will get their £35k - it's just won't be worth anything. Zimbabwe £500,000,000 dollar notes are currently being traded on eBay for about £6.00

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basically its a straight forward flight to safety if nationwide are preceived to be the safest 'dodgy uk bank' then they are suddenly indesructable as wave after wave of money comes rushing in from places like Bungle bank and Alliance+LiarLoans

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  • 399 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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