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zemphis

Strs, Is Your Money Safe?

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Im fairly new here so just trying to get up to speed with some very smart people on here. Ive learned some interesting and truthful facts about the market. But i had a thought the other day regarding STRs that i would like to share.

With all these losses banks are making and the unstable nature of everything at the moment; can people really be sure their savings are safe in the bank?

For example, Joe Public sold his property last year for £100k and put all the money in a savings account and is earning interest. He is currently renting and waiting for prices to come down before he can afford a bigger house.

But all of this can only happen at a later date presuming the money is still there when he needs it. But what if something happened in the meantime and it was all wiped out? I dont know how or why but this is all hypothetical - banks going bankrupt, no insurance?

With property at least you know its there and you own it, its a tangible asset. Money in the bank i dont know.

But anyway, what are peoples thoughts on this or am i talking rubbish?

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Im fairly new here so just trying to get up to speed with some very smart people on here. Ive learned some interesting and truthful facts about the market. But i had a thought the other day regarding STRs that i would like to share.

With all these losses banks are making and the unstable nature of everything at the moment; can people really be sure their savings are safe in the bank?

For example, Joe Public sold his property last year for £100k and put all the money in a savings account and is earning interest. He is currently renting and waiting for prices to come down before he can afford a bigger house.

But all of this can only happen at a later date presuming the money is still there when he needs it. But what if something happened in the meantime and it was all wiped out? I dont know how or why but this is all hypothetical - banks going bankrupt, no insurance?

With property at least you know its there and you own it, its a tangible asset. Money in the bank i dont know.

But anyway, what are peoples thoughts on this or am i talking rubbish?

If the banks all got wiped out, I think you would have bigger worries than your savings. Protecting your own safety, for a start....

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Im fairly new here so just trying to get up to speed with some very smart people on here. Ive learned some interesting and truthful facts about the market. But i had a thought the other day regarding STRs that i would like to share.

With all these losses banks are making and the unstable nature of everything at the moment; can people really be sure their savings are safe in the bank?

For example, Joe Public sold his property last year for £100k and put all the money in a savings account and is earning interest. He is currently renting and waiting for prices to come down before he can afford a bigger house.

But all of this can only happen at a later date presuming the money is still there when he needs it. But what if something happened in the meantime and it was all wiped out? I dont know how or why but this is all hypothetical - banks going bankrupt, no insurance?

With property at least you know its there and you own it, its a tangible asset. Money in the bank i dont know.

But anyway, what are peoples thoughts on this or am i talking rubbish?

Cash is not safe a diversified portfolio maybe?

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Im fairly new here so just trying to get up to speed with some very smart people on here. Ive learned some interesting and truthful facts about the market. But i had a thought the other day regarding STRs that i would like to share.

With all these losses banks are making and the unstable nature of everything at the moment; can people really be sure their savings are safe in the bank?

For example, Joe Public sold his property last year for £100k and put all the money in a savings account and is earning interest. He is currently renting and waiting for prices to come down before he can afford a bigger house.

But all of this can only happen at a later date presuming the money is still there when he needs it. But what if something happened in the meantime and it was all wiped out? I dont know how or why but this is all hypothetical - banks going bankrupt, no insurance?

With property at least you know its there and you own it, its a tangible asset. Money in the bank i dont know.

But anyway, what are peoples thoughts on this or am i talking rubbish?

Chunks of £35k per bank, if you have a partner separate accounts with £35k in each.

Bonds

Shares

Gold

Try and put the money where it works at the risk level you are willing to accept.

Safest "Bank" at the moment is the Peoples Bank, Northern Rock.

How can you have a tangible asset if it has no value?

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Chunks of £35k per bank, if you have a partner separate accounts with £35k in each.

Bonds

Shares

Gold

Try and put the money where it works at the risk level you are willing to accept.

Safest "Bank" at the moment is the Peoples Bank, Northern Rock.

How can you have a tangible asset if it has no value?

Sorry I am a newbie on here and just wondered if someone could enlighten me on this? I was thinking of putting savings into NR as I believed all the savings would be guarenteed by UK GOV but when I looked at the Terms and Conditions for a E-Saver account on the site I found this .....Northern Rock is a member of the Financial Services

Compensation Scheme established under the Financial

Services and Markets Act 2000. Payments under the

Scheme are limited to 100% of the first £35,000 of a

depositor's total deposits with the bank. Most depositors,

including individuals and some small firms are covered.

The scheme limit relates to each depositor for their

combined deposits held with Northern Rock and not for

each Account. Further details of the scheme are available

on request.

Could anyone explain ????????

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With property at least you know its there and you own it, its a tangible asset. Money in the bank i dont know.

Money in the bank is money in the bank.

Money you made on your house is tied up in the house and equity release is a lot harder now.

You don't own the property if you have a mortgage and at the moment losing the equity looks a sure fire bet while the money in the bank is fairly safe, at least for a while.

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if banks fail to this degree then house prices will collapse much further, both situations are bad frankly, cash in bank or owning property, your wealth would be destroyed.

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Sorry I am a newbie on here and just wondered if someone could enlighten me on this? I was thinking of putting savings into NR as I believed all the savings would be guarenteed by UK GOV but when I looked at the Terms and Conditions for a E-Saver account on the site I found this .....Northern Rock is a member of the Financial Services

Compensation Scheme established under the Financial

Services and Markets Act 2000. Payments under the

Scheme are limited to 100% of the first £35,000 of a

depositor's total deposits with the bank. Most depositors,

including individuals and some small firms are covered.

The scheme limit relates to each depositor for their

combined deposits held with Northern Rock and not for

each Account. Further details of the scheme are available

on request.

Could anyone explain ????????

They have sacked most of their web developers so no one has the expertise to amend it to "your money is underwritten by the UK tax payer"

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Safest "Bank" at the moment is the Peoples Bank, Northern Rock.

I remember when Charlie the Tramp put 25k in Northern Rock just after the trouble started. I thought he was being a bit reckless at the time but it turned out to be a pretty savvy move on his part.

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They have sacked most of their web developers so no one has the expertise to amend it to "your money is underwritten by the UK tax payer"

can we be totally sure that savings in NR are safe even if bank owned by 'the people'? Also,at present, as I read in another post, if you have any debt with the bank you have your savings in (mortgage etc) the bank will take the debt amount from the savings..... so you might not be getting you 35k 'guarantee' back anyway? So, for example, if your mortgage is 35k and you have savings of 35k you get feck all?!

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I dont know how or why but this is all hypothetical - banks going bankrupt, no insurance?

Well, it is seriously boring, but our cash is in National Savings, underwritten by the Treasury. It is very simple to organise, and the Income Bonds pay 4.8% taxable. So it's not even keeping up with inflation, but as someone once said, "it is nor the return ON the money, but the return OF the money!". I am thinking of moving some of it into National Savings Index Linked bonds, which pay RPI +1%, tax free.

If inflation really gets going, obviously more will go in that direction. However, oil, and many other commodities, are all falling, so maybe we will not have the inflation everyone seems to expect! Best wishes.

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I dont know how or why but this is all hypothetical - banks going bankrupt, no insurance?

Well, it is seriously boring, but our cash is in National Savings, underwritten by the Treasury. It is very simple to organise, and the Income Bonds pay 4.8% taxable. So it's not even keeping up with inflation, but as someone once said, "it is nor the return ON the money, but the return OF the money!". I am thinking of moving some of it into National Savings Index Linked bonds, which pay RPI +1%, tax free.

If inflation really gets going, obviously more will go in that direction. However, oil, and many other commodities, are all falling, so maybe we will not have the inflation everyone seems to expect! Best wishes.

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Guest Steve Cook

Hopefully, I wont need to care soon enough. I have persuaded my brother in law and also my sister in law's fiance to make a joint purchase of farmland in Normandy. We should be able to make a purchase of over a hundred acres. Once bought, I frankly couldn't give sh*t what happens to it's exchange value in fiat terms. I will have secured a ticket to the future for my family (as far as that future can be secured)

Finally, I feel like I am doing something

Edited by Steve Cook

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Guest AuntJess
Well, it is seriously boring, but our cash is in National Savings, underwritten by the Treasury. It is very simple to organise, and the Income Bonds pay 4.8% taxable. So it's not even keeping up with inflation, but as someone once said, "it is nor the return ON the money, but the return OF the money!". I am thinking of moving some of it into National Savings Index Linked bonds, which pay RPI +1%, tax free.

If inflation really gets going, obviously more will go in that direction. However, oil, and many other commodities, are all falling, so maybe we will not have the inflation everyone seems to expect! Best wishes.

I agree with doing this, whilst deploring the scheme that means that the govt. are STILL making money out of us, by paying such crap dividends/interest.

Head they win - tails we lose. :ph34r:

In the olden days the lords of the manor robbed you blind and kept you under.We haven't really moved on from that, have we? - when the ELECTED representatives cook up the means to keep us with our noses in the dirt, whilst theirs are in the trough. :angry:

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Guest Steve Cook
I agree with doing this, whilst deploring the scheme that means that the govt. are STILL making money out of us, by paying such crap dividends/interest.

Head they win - tails we lose. :ph34r:

In the olden days the lords of the manor robbed you blind and kept you under.We haven't really moved on from that, have we? - when the ELECTED representatives cook up the means to keep us with our noses in the dirt, whilst theirs are in the trough. :angry:

The lyrics change. But the melody remains

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Sorry I am a newbie on here and just wondered if someone could enlighten me on this? I was thinking of putting savings into NR as I believed all the savings would be guarenteed by UK GOV but when I looked at the Terms and Conditions for a E-Saver account on the site I found this .....

Northern Rock are under the same system as the other banks, the chances of them going bust are about the same as the UK government. So 50/50 :lol:

Seriously if NR go bust and take your savings , you will be worrying about drinking water, not claims. Some other Santander setup is less secure.

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Isn't the 35k figure meaningless though?

The government don't have the money to cover it all do they?

technically they don't have enough to pay their current expenses, but that doesn't stop them from spending more.

that's why the government bonds and 35k guarantees etc are so trusted, the government can always make more if they need to.

it might not have the same value (purchasing power) as your are expecting, but in theory there isn't a limit really to how much they could pay off.

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Hopefully, I wont need to care soon enough. I have persuaded my brother in law and also my sister in law's fiance to make a joint purchase of farmland in Normandy. We should be able to make a purchase of over a hundred acres. Once bought, I frankly couldn't give sh*t what happens to it's exchange value in fiat terms. I will have secured a ticket to the future for my family (as far as that future can be secured)

Finally, I feel like I am doing something

If things get so bad that this course of action becomes justified, then you can expect hordes of torch-and-pitchfork wielding locals appearing to steal your haricots verde and artichoke hearts every night .

That is before they try to make andouillette from your, and your in-laws, insides...

Bon Appetite!

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Guest Steve Cook
If things get so bad that this course of action becomes justified, then you can expect hordes of torch-and-pitchfork wielding locals appearing to steal your haricots verde and artichoke hearts every night .

That is before they try to make andouillette from your, and your in-laws, insides...

Bon Appetite!

I'll take my chances thanks.... ;)

I'd sooner be in the position of defending my means of survival as opposed to trying to take it off someone else. Why does a rabbit run faster than a fox? Because the fox is running for it's dinner whereas the rabbit is running for it's life.

Besides, the point of buying now is in order to embed onself in the community. I wouldn't want to be in the position of trying to do this in a decade's time for the reason you cite

One possible solution I am toying with is to lease out 2 acre lots to locals as personal food production begins to become a necessity. As with squires of old, the way to hold the land is not to hoard it, but to tenant it out. That way, you get your very own free police force who will defend you land for your since it is in their own interest to do so.

Edited by Steve Cook

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In the olden days the lords of the manor robbed you blind and kept you under.We haven't really moved on from that, have we? - when the ELECTED representatives cook up the means to keep us with our noses in the dirt, whilst theirs are in the trough. :angry:

The church used to do very nicely too. Look at Georgian rectories compared to workers hovels.

Of course mammon is the God of the masses now, and his clergy - the bankers - now inhabit those rectories.

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I have money split between European and UK banks, but most of it is in NatWest, because I'm too lazy to move it, although I often wake these days in a sweaty nightmare of bank failure and total loss. The more I read on this site the more paranoid I get. I know that wherever I move the money, I will soon read a horror story of risk and losses so am pretty well paralysed. I am working on the (reasonable I think) assumption that if RBS goes belly up it will take down everything with it: every business, every household, every function of government. We will be like the Germans at the end of WWII, waiting in the ruins for foreign help to rescue us. By the time big banks fail, the money contained in them will be worthless.

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Personally, I take the view that spreading lumps of 35k around is a senseless faff if you have enough of them to buy a decent house. I agree with the thought that if banks collapse in that kind of serious way, there will be much more to worry about than where all the cash went. Keeping a weather eye out is a good idea - don't regard all banks as the same.

I also think that diversifying an STR fund into non cash investments is a little error prone assuming the idea is to buy a house again with it within a year or two.

Nothing has ever been safe in life, but that is no reason to let the catastrophists panic you into foil headgear.

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  • 396 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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