Getting Nervous About Str Fund

[roblpm]

Banks going bust left right and centre, HBOS down 36% on the day!!

Starting to think that even when the HPC happens wont have any cash left in the bank or a business left!

So plan has to be to protect savings....................

Anyone know if the building societies are safer than the banks in general??

And is there a capital index or whatever on the banks to see who is most exposed??

Gold (bars under the bed??)

Or should we give up trying to get a decent interest rate and stick it all in a NSI Investment account.

Northern Rock??

[warpig]

"when the HPC happens" Where do you live the Flannan Isles?

Gold and/or NS&I index linked certs are the safest options IMO. NS&I are OK, assuming you are prepared to lose some of your savings to a manipulated RPI, but it depends how much savings you have. Gold is the preferable route.

Banks going bust left right and centre, HBOS down 36% on the day!!

Starting to think that even when the HPC happens wont have any cash left in the bank or a business left!

So plan has to be to protect savings....................

Anyone know if the building societies are safer than the banks in general??

And is there a capital index or whatever on the banks to see who is most exposed??

Gold (bars under the bed??)

Or should we give up trying to get a decent interest rate and stick it all in a NSI Investment account.

Northern Rock??

[markinspain]

Invest it in the Bank of Nowhere, because apparently, nowhere is safe!

[The Masked Tulip]

Just about to move a largish sum from HBOS to Nationwide where most of my STR fund, admittedly more than the 35K limit, but I think, and hope, that Nationwide is about the safest pair of hands out there along with the Leeds Building Society. I believe that both fund the majority of their lending from their deposits so should be essentially safe.

Having said that, not sure how exposed the Nationwide will be to a completel collapse in the housing market.

Anyhow, plan is, today, to move money from the HBOS to the Nationwide and then consider spreading that moved sum between HSBC and Britannia - both of whom are offering crap IRs with limited withdrawal options BUT... better to lose some interest than the entire lump sum.

[yawnIHateSundays]

Banks going bust left right and centre, HBOS down 36% on the day!!

Starting to think that even when the HPC happens wont have any cash left in the bank or a business left!

So plan has to be to protect savings....................

Anyone know if the building societies are safer than the banks in general??

And is there a capital index or whatever on the banks to see who is most exposed??

Gold (bars under the bed??)

Or should we give up trying to get a decent interest rate and stick it all in a NSI Investment account.

Northern Rock??

Whatever you do, spread the risk - don't put it all in one account.

[roblpm]

Exactly my thought Masked Tulip. I just moved some money out of the Birmingham Midshires into my current account (RBS!) but need to stash it somewhere else!

And BTW warpig I live in Edinburgh (nearly at the Flannan Isles) and we are behind the curve! I can not go out today and buy a decent house for 40-50% off the peak price, so that's what I mean by waiting for the HPC! So in the mean time I have to keep cash somewhere.

[The Masked Tulip]

Exactly my thought Masked Tulip. I just moved some money out of the Birmingham Midshires into my current account (RBS!) but need to stash it somewhere else!

Glad I ain't the only one thinking the same roblpm. Get it below the 35K limit in HBOS today/this week and then have a think in the next few days about where to spread it.

[lets get it right]

Just about to move a largish sum from HBOS to Nationwide where most of my STR fund, admittedly more than the 35K limit, but I think, and hope, that Nationwide is about the safest pair of hands out there along with the Leeds Building Society. I believe that both fund the majority of their lending from their deposits so should be essentially safe.

Having said that, not sure how exposed the Nationwide will be to a completel collapse in the housing market.

Anyhow, plan is, today, to move money from the HBOS to the Nationwide and then consider spreading that moved sum between HSBC and Britannia - both of whom are offering crap IRs with limited withdrawal options BUT... better to lose some interest than the entire lump sum.

I must admit I'm top heavy (over the 35k) in Nationwide. I don't think it is possible for the housing market to completely collapse. In the last analysis our economy cannot function without a banking system. So, somehow, the banking system will be kept afloat.

Although I objected to the Northern Rock bailout in principle, in practice I'm glad they did it. I'm sure we'd have had a few more bank runs otherwise and, of course, bank runs are the ultimate self-fulfilling prophecy.

What I keep wondering about is whether to put some money into equities - not necessarily in the UK. Somewhere where the dividends equate to something similar to what I'm currently getting in the bank - so that if equity prices collapse - you can sit it out for 10 years and (hopefully) get your capital back. But who to invest in?

Maybe there will be a widespread flight to quality and Nationwide will end up with half the UK's savings and basically dominate the UK mortgage market?

Something else I am thinking about is dumping my Internet accounts. Occasionally you find you can't log in - if they closed sites during a crisis it would be very stressful. I have one account with a local building society. The amount in it is less than the 35k and I have the pass book here right next to me. Only problem is - if I want to withdraw the money they'll give me a cheque. In a banking crisis, what use would that be? I think they have a rule the maximum you can have in cash is £5k and to get that you have to give them a few days notice.

So, what to do? Start drawing out cash a bit at a time and stick it under the mattress? But then you don't get any interest on it.

Funny world. Who would have thought in 1997 we'd have ended up here?

Edited September 15, 2008 by Lets' get it right

[The Masked Tulip]

I must admit I'm top heavy (over the 35k) in Nationwide. I don't think it is possible for the housing market to completely collapse. In the last analysis our economy cannot function without a banking system. So, somehow, the banking system will be kept afloat.

Although I objected to the Northern Rock bailout in principle, in practice I'm glad they did it. I'm sure we'd have had a few more bank runs otherwise and, of course, bank runs are the ultimate self-fulfilling prophecy.

What I keep wondering about is whether to put some money into equities - not necessarily in the UK. Somewhere where the dividends equate to something similar to what I'm currently getting in the bank - so that if equity prices collapse - you can sit it out for 10 years and (hopefully) get your capital back. But who to invest in?

Maybe there will be a widespread flight to quality and Nationwide will end up with half the UK's savings and basically dominate the UK mortgage market?

Something else I am thinking about is dumping my Internet accounts. Occasionally you find you can't log in - if they closed sites during a crisis it would be very stressful. I have one account with a local building society. The amount in it is less than the 35k and a have the pass book here right next to me. Only problem is - if I want to withdraw the money they'll give me a cheque. In a banking crisis, what use would that be? I think they have a rule the maximum you can have in cash is £5k and to get that you have to give them a few days notice.

I think there might be a flight to the Nationwide this week and, I suspect, later in the week a flight from HBOS when people get home tonight and hear about the collapse in their share price.

I will have 3 times the 35K limit in Nationwide by, hopefully, tomorrow and ain't happy about it. I think I will spread it out into the Britannia and HSBC just to be on the safe side as we don't know where this is going to go. Best to be under 35K in each for the next few weeks I guess.

As for equities, I personally would not touch them with a barge-pole at the moment. I just wish I was able to get my admittedly small pension fund out of the Standard Life a year ago. My gut feeling is that the FTSE will be half the current prices before this is all over.

Edit:

Just waiting for the Working Lunch take on things before moving money out of HBOS. According to HBOS's site they have same day faster payments in place since this September. Hmm.

Edited September 15, 2008 by The Masked Tulip

[Potwalloper]

I must admit I'm top heavy (over the 35k) in Nationwide.

Me too. The government won't be honouring payouts if the likes of the Nationwide go under, anyway!

I have put some in NS&I too.

[StainlessSteelCat]

Are there any independent reviews of the safety of individual banks? I've got most of my savings in the Coop - mostly for ethical reasons but my ethics don't extend to losing all my cash.

[Nationalist]

I don't believe the govt would let a major high street retail bank go under. They rescued Northern Rock and I think they'd have to rescue any of the big ones, eg, Nationwide, HSBC etc. Of course the shareholders would lose their shirts but depositors would be bailed out. Personally I save mainly with HSBC - generally considered to be the safest of the safe, due to sheer size.

I was looking at the spec on Sainsbury's online saver a/c over the weekend; and I can't see why I wouldn't move to it (minimum deposit £1, AER 5.5%, no withdrawal penalties). But probably inertia will keep me at HSBC.

[fatbaldbloke]

I'm split across ICICI, Kaupthing and HSBC

Got a small amount with HBoS (<10k) but will leave there for now

[The Masked Tulip]

Are there any independent reviews of the safety of individual banks? I've got most of my savings in the Coop - mostly for ethical reasons but my ethics don't extend to losing all my cash.

Co-Op is considered one of the safest out there. Their boss has been on TV numerous times in the past year talking about the madness of all the lending that has gone on. I understand that they have not got involved in the madness in any like many of the others. I have money in the Co-Op and I do not worry about it like I now do with HBOS. Sleep easy.

[crash2006]

Invest it in the Bank of Nowhere, because apparently, nowhere is safe!

hahaha

[detached]

Northern Rock is the safest place to stash your loot. Full unlimited guarantee from HM Treasury, plus the chance of free season tickets to NFC if they end up buying out Mike Ashley.

They have taken over £4bn of new retail deposits since the beginning of the year, and not all from Geordies

[Nationalist]

I'm split across ICICI, Kaupthing and HSBC

Got a small amount with HBoS (<10k) but will leave there for now

Those foreign banks offer a ton of interest, but personally I wouldn't touch them. You might find the UK taxpayer has little appetite for bailing out foreigners.

[davidg]

> Getting Nervous About Str Fund, Any Ideas?

Bricks 'n' Mortar mate.

[Realistbear]

Banks going bust left right and centre, HBOS down 36% on the day!!

Starting to think that even when the HPC happens wont have any cash left in the bank or a business left!

So plan has to be to protect savings....................

Anyone know if the building societies are safer than the banks in general??

And is there a capital index or whatever on the banks to see who is most exposed??

Gold (bars under the bed??)

Or should we give up trying to get a decent interest rate and stick it all in a NSI Investment account.

Northern Rock??

http://www.telegraph.co.uk/money/main.jhtm...2/ymsafe112.xml

How safe is your bank or building society?

By Teresa Hunter

Last Updated: 6:10pm BST 11/09/2008

Page 1 of 3

Savers and investors may have watched with a mixture of terror and elation as the American government nationalised its two mortgage giants Freddie Mac and Fannie Mae in the biggest financial bail-out ever.

Marie-Therese "Gorgeous Lips" Devine decided to save with Nationwide

Closer to home, Britain's biggest building society, Nationwide, threw a lifeline to two fellow mutuals, the Derbyshire and the Cheshire. Both had been hit by defaulting loans - that is, borrowers who could not repay their debts - and it is understood that the Government was keen to avoid another Northern Rock...

This article goes on to list banks you should not be leaving too much savings with and those that might be allright.

[The Masked Tulip]

I don't believe the govt would let a major high street retail bank go under. They rescued Northern Rock and I think they'd have to rescue any of the big ones, eg, Nationwide, HSBC etc. Of course the shareholders would lose their shirts but depositors would be bailed out. Personally I save mainly with HSBC - generally considered to be the safest of the safe, due to sheer size.

I was looking at the spec on Sainsbury's online saver a/c over the weekend; and I can't see why I wouldn't move to it (minimum deposit £1, AER 5.5%, no withdrawal penalties). But probably inertia will keep me at HSBC.

I have £50 in HSBC with an online account which I opened for emergencies. The penalty is you lose interest if you make a withdrawal in any month. I am also looking at Britannia now who have a direct reserve account which allows 12 withdrawls in a year and a bonus IR rate for 6 months - might be a good port in a storm.

[bricor mortis]

I'm split across ICICI, Kaupthing and HSBC

ICICI .. I thought they were no. 1 in the scary league.

anyone know if abbey / santander are safe ?

[warpig]

You have 2 problems, retaining each pound and the purchasing power of each pound, many here do not seem to appreciate the potentially devestating affects of inflation on their savings, make sure you safe guard against both.

Exactly my thought Masked Tulip. I just moved some money out of the Birmingham Midshires into my current account (RBS!) but need to stash it somewhere else!

And BTW warpig I live in Edinburgh (nearly at the Flannan Isles) and we are behind the curve! I can not go out today and buy a decent house for 40-50% off the peak price, so that's what I mean by waiting for the HPC! So in the mean time I have to keep cash somewhere.

[keef]

I transferred my £250k STR Fund out of B&B a coupla months ago & stuck it in a Northern Rock 1 Year Bond - 6.5% before tax.

I'm content that this is the safest place for it & that's a good return (which is a bonus really as I'd have stuck it in there no matter what).

[Justice]

You have 2 problems, retaining each pound and the purchasing power of each pound, many here do not seem to appreciate the potentially devestating affects of inflation on their savings, make sure you safe guard against both.

Yes we know that but how do you safe guard against both ?

Gold/Silver has gone up by a factor of 4 on the spot price and if you want the physical silver then it's up by a factor of seven over the past 5 years so to me it's already peaked and must be considered to be in bubble teritory.

£35k saftey limit in the UK is only 20k euros in ING account in europe but i'll stick with euro's for now as i think the pound will drop to 1.10euros.

[bomberbrown]

http://www.telegraph.co.uk/money/main.jhtm...2/ymsafe112.xml

How safe is your bank or building society?

By Teresa Hunter

Last Updated: 6:10pm BST 11/09/2008

Page 1 of 3

Savers and investors may have watched with a mixture of terror and elation as the American government nationalised its two mortgage giants Freddie Mac and Fannie Mae in the biggest financial bail-out ever.

Marie-Therese "Gorgeous Lips" Devine decided to save with Nationwide

Closer to home, Britain's biggest building society, Nationwide, threw a lifeline to two fellow mutuals, the Derbyshire and the Cheshire. Both had been hit by defaulting loans - that is, borrowers who could not repay their debts - and it is understood that the Government was keen to avoid another Northern Rock...

This article goes on to list banks you should not be leaving too much savings with and those that might be allright.

From that article:

Ten tips to help you sleep at night

Don’t worry. No saver has lost cash with a British building society since the First World War.

Be sensible. If an interest rate looks too good to be true, it probably is

Know who you are investing with. Check their credentials out at www.fsa.gov.uk

Only invest with authorised banks and building societies.

Spread your money around. Avoid investing more than £35,000 with any one group.

Big is beautiful. Big banks and building societies are less exposed to a single catastrophic setback than small ones.

Be wary of putting your money with an organisation you have never heard of.

Follow the news.

Don't be greedy. A good return that lets you sleep at night is better than the top rate from someone who could go belly-up.

Mortgage holders and those with credit card debt need not worry. They have got the institution's money - not the other way round.

#11 - Don't worry, there hasnt been a run on a UK bank for 150 years since last year......errrrr....hang on??