Rates being manipulated down. Is it still worth it?

The relevant institutions are (roughly) required to operate on a parent company that does their borrowing and an operating company that holds their deposits. The rescue would transfer the operating company and the deposits to a new holding company while the parent company failed. There are also some more fiddly depositor bail-in provisions that can take effect under some of the schemes, but not within the FSCS limit. So the guarantee is not only not empty, it's likely to be quite easy to carry out, with requirements for the relevant systems to do that also in place and without even a need to invoke the FSCS protection for most depositors. This work isn't quite complete yet but is very advanced, though with some uncertainties about just where limits between pieces of companies have to be placed.

For the more complex issues like derivatives contracts for banks engaged in that, there's work being done in the way of record keeping to make those easier to unravel.

The big losers will be the equity owners of the banks, then the holders of specifically at risk corporate bonds and finally the rest of the corporate bond holders according to their priority. They could all lose all of their money. However, cash flow is likely to be the issue - as it was for Northern Rock - and in time the ongoing payments from creditors on things like mortgages may well get near total recovery for many of the bond holders. Assuming that there isn't a rescue package to avoid the things in this paragraph. There may be because bond holders means "company and individual pension owners, including annuitants".

I am inclined to agree withyou, it is all very worrying. I have already started drawing down my investments with RS and I think SWMBO will be doing the same. Like you, we may even take th hit and get out in one go.

I've just made my first withdrawal from RS as the rates have gone too low for me now. I am planning on leaving my money recycling at 5.5% but if I get a large amount unmatched I am removing it and finding a new home for it within P2P.

There are better rates, admittedly for greater risk, to be had elsewhere especially whilst we are below 5%.

Under normal circumstances, I'd agree with you, but Western economies are well past using established economics. Hell will freeze over before Carney raises interest rates. Inflation could easily hit 5%+ next year due to the fall of the £ against the $, but I'll bet my winter hibernation rations that rates won't move up.

This is all part of the Bilderburg plan. People with money, who've taken care to provide for themselves, are all being left to burn with the poor. Everyone will be poor and living under the thumb of the rich elite. The future is financial fascism that's way worse than anything we've ever seen.

5 year rate at 4.1% with £3M offered below 5%. Crazy! I've built up to £45K in Ratesetter 5 year market but will now start withdrawing all repayments as these rates are a joke. No idea who is lending so cheaply! Having said that, whilst in the Halifax the other day I saw a poster offering loans of £5-15K for just 3.3%. We're in times of cheap money but I'd rather keep mine under my mattress than lend it to strangers for 5 years, unsecured for a measly 4%!!! Seriously I'd rather get 0.1% in a high street bank than risk it on P2P at 4.1% for 5 years. I really hope this is a blip!

I second that suggestion. Perhaps we should all make a formal written request for RS to deliver this on a dedicated web page?

Elites have been running societies for thousands of years. Nothing has changed.