Savings Interest Rates Getting Worse

[Wattie]

I have asked this before but let's try again......... Can you tell me where I can put my money where I can have instant access and there is no risk that I will lose my initial deposit.

At home, 100%.

This exists but if it ever is required it could take months or years to kick in...,and your money will be worth less because of inflation.

Deposit Guarantee Scheme and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018: explanatory information

www.gov.uk

Banks work on a “fractional reserve” system. This means there isn’t the money in existence to give everyone their money back in the event of a crisis.

Money in a bank no longer belongs to you. You become a creditor of the bank and it is in their powers to refuse or limit your access to it.

 

[lifes2short]

come on who bought one of these, wattie were you one of the private buyers

Royal Mint makes £5,000 ceremonial gold coin that weighs five kilos

Ornate coin is reportedly worth £300,000

www.independent.co.uk

 

[midlifecrisis]

If interests rates get lower could we be in a deflation situation?

 

[Hawk13]

I have asked this before but let's try again......... Can you tell me where I can put my money where I can have instant access and there is no risk that I will lose my initial deposit.

You only really have 3 options:

1 - under the bed (will lose value against inflation)
2 - premium bonds (max 50k and you will need to win circa 50 a month to counter inflation - this is realistsic but can't be reinvested if you already have max - and you have the chance of winning a big prize)
3 - bank account / savings bond. 1.35% can be had in instant access and more if you are prepared to lock away. Deposit guarantee scheme covers 85k per person.

 

[Davidt99]

At home, 100%.

This exists but if it ever is required it could take months or years to kick in...,and your money will be worth less because of inflation.

Deposit Guarantee Scheme and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018: explanatory information

www.gov.uk

Banks work on a “fractional reserve” system. This means there isn’t the money in existence to give everyone their money back in the event of a crisis.

Money in a bank no longer belongs to you. You become a creditor of the bank and it is in their powers to refuse or limit your access to it.

That makes no sense, to me anyway. You think keeping the money at home earning 0% is better than having the money in an account earning 1.35%?

 

[Davidt99]

You only really have 3 options:

1 - under the bed (will lose value against inflation)
2 - premium bonds (max 50k and you will need to win circa 50 a month to counter inflation - this is realistsic but can't be reinvested if you already have max - and you have the chance of winning a big prize)
3 - bank account / savings bond. 1.35% can be had in instant access and more if you are prepared to lock away. Deposit guarantee scheme covers 85k per person.

This makes more sense..... I already do points 2 and 3. Wattie appears to suggest point 1 is the better option though.

 

[Wattie]

That makes no sense, to me anyway. You think keeping the money at home earning 0% is better than having the money in an account earning 1.35%?

Apologies, I wasn’t clear.
You asked “Can you tell me where I can put my money where I can have instant access and there is no risk that I will lose my initial deposit.”
If you keep your money at home (safely) you are 100% in control of it....not reliant to any degree on someone else which means you won’t lose it if they decide you can’t have it.

Personally I’ll take the 100% control instead of the pathetic 1.35% youre being paid in return for no control at all.

Both option lose value but I know,from experience, what is more important to me.

 

[JonW]

Apologies, I wasn’t clear.
You asked “Can you tell me where I can put my money where I can have instant access and there is no risk that I will lose my initial deposit.”
If you keep your money at home (safely) you are 100% in control of it....not reliant to any degree on someone else which means you won’t lose it if they decide you can’t have it.

Personally I’ll take the 100% control instead of the pathetic 1.35% youre being paid in return for no control at all.

Both option lose value but I know,from experience, what is more important to me.

I don’t get this at all...

Wattie, what’s the basis for you saying you would not trust that Goldman Sachs (and other large, multi-national respected financial institutions) will be a safe place to keep your money.... even if you ignore things like the FSCS protection, I can’t understand the logic for saying you’d rather have the cash under a mattress...

 

[Wattie]

I don’t get this at all...

Wattie, what’s the basis for you saying you would not trust that Goldman Sachs (and other large, multi-national respected financial institutions) will be a safe place to keep your money.... even if you ignore things like the FSCS protection, I can’t understand the logic for saying you’d rather have the cash under a mattress...

Personal opinion (experience) -Banks are no longer trustworthy.
They have become criminal organisations, beyond the law.

Goldman for example traded against its own clients.

Goldman Sachs to pay US$110m ‘after traders shared info on clients’

Traders reportedly shared private investor information with those from other banks, including details on how a client nicknamed ‘Satan’ was trading US dollars for Euro

www.scmp.com

Here’s the staggering amount banks have been fined since the financial crisis

Bank of America and JPMorgan Chase have paid the largest fines, according to a tally released Tuesday.

www.marketwatch.com

The next banking crisis will be far worst than the first and it will be savers that suffer. If ever the “protection” mechanisms protecting deposits are required, the Money doesn’t exist to give everyone it back. Fractional banking.
Savers will pay-

Why Bank Bail-Ins Will Be the New Bailouts

Public outcry over rescuing banks with taxpayer money in 2008 forced a switch in governmental tactics, making bail-ins the new bank bailouts.

www.investopedia.com

They would have to print it out of thin air ( devaluing it), which falls in line with what they’ve been doing for almost a decade now.....permanent QE.

If you think the American banks/banking system are in good shape, why is the Fed printing money out of thin air at the fastest rate since the GFC via its repo operation?

 

[JonW]

Thanks Wattie - I try not to disagree with someone if I don’t even understand their perspective, so thanks for trying to explain yours…

 

[rockits]

I agree I don't trust the banks either. However the interest they pay is more than under my mattress and the amount I have in any account is way more than the protected amounts.

Under a mattress doesn't feel safe to me. My uncle got attacked in broad day light once by 2 guys knocking on the door on scramblers and helmets. Big fight kicked off.....blood everywhere and they scarpered after taking a few blows. Police turned up and he had £100k cash in the wardrobe in a safe with the door open! Called my dad as his business partner as a character witness to coroborate his story. My dad and mum were in their villa in Spain

 

[Wattie]

I agree I don't trust the banks either. However the interest they pay is more than under my mattress and the amount I have in any account is way more than the protected amounts.

Under a mattress doesn't feel safe to me. My uncle got attacked in broad day light once by 2 guys knocking on the door on scramblers and helmets. Big fight kicked off.....blood everywhere and they scarpered after taking a few blows. Police turned up and he had £100k cash in the wardrobe in a safe with the door open! Called my dad as his business partner as a character witness to coroborate his story. My dad and mum were in their villa in Spain

Fair enough, I don't expect people who haven't been in a situation where you cannot get your money out of a bank to understand fully what its like.

 

[rockits]

Fair enough, I don't expect people who haven't been in a situation where you cannot get your money out of a bank to understand fully what its like.

Have you had that situation Wattie? That must be bizarre and pretty frustrating. Also I expect quickly escalating into violent confrontations.

 

[Wattie]

Have you had that situation Wattie? That must be bizarre and pretty frustrating. Also I expect quickly escalating into violent confrontations.

I was in Cyprus and lived through it, most of my savings were out of the banks (saw it coming) when it happened and I'd spent some on the MC.
Funnily enough most Cypriots took it on the chin- very little unrest. I suspect they're missing that money now.

 

[Felonious Crud]

Apologies, I wasn’t clear.
You asked “Can you tell me where I can put my money where I can have instant access and there is no risk that I will lose my initial deposit.”
If you keep your money at home (safely) you are 100% in control of it....not reliant to any degree on someone else which means you won’t lose it if they decide you can’t have it.

Personally I’ll take the 100% control instead of the pathetic 1.35% youre being paid in return for no control at all.

Both option lose value but I know,from experience, what is more important to me.

Wattie, what’s your address? I’m a burglar, a ******* nasty one and I’m coming for your gold and your cash*. Your flat sounds like rich pickings.

(*joke)

 

[Ebenezer]

Anybody remember Kaupting Edge? Had all my money locked up in there. Very relieved when the government stepped in
Eb

 

[allandwf]

I don't like, or trust, banks either. I have assets, and stuff, and a small amount I grudgingly have in the bank. If things went t@ts up tomorrow I could always sell something. If I have more than a fiver in the bank when I go I will have failed.

 

[Felonious Crud]

... If I have more than a fiver in the bank when I go I will have failed.

D@mn straight!

 

[Oneball]

Fair enough, I don't expect people who haven't been in a situation where you cannot get your money out of a bank to understand fully what its like.

Is it any different to buillion? Presumably when you’re trading you haven’t actually got bars being delivered or taken away by courier?

 

[Wattie]

Wattie, what’s your address? I’m a burglar, a *** nasty one and I’m coming for your gold and your cash*. Your flat sounds like rich pickings.

(*joke)

Flat?
I worked my **** off for years to buy an apartment.....
What’s a man to do?