ashtondav
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Post by ashtondav on Jul 20, 2017 5:16:50 GMT
As others have commented, had RS not taken the action they have, this would've flattened the provision fund. But is our wider banking system any safer? The Co-operative Bank (for example) has around £30B on deposit, but the FSCS (upon which we rely to safeguard our savings) only has assets of around £4B. That's quite a gap to fill. Completely different (thankfully). The government of the uk stands behind FSCS. No uk government will let little old ladies lose money from deposits in uk banks and building societies. You are 100% safe in such accounts.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Jul 20, 2017 7:20:18 GMT
As others have commented, had RS not taken the action they have, this would've flattened the provision fund. But is our wider banking system any safer? The Co-operative Bank (for example) has around £30B on deposit, but the FSCS (upon which we rely to safeguard our savings) only has assets of around £4B. That's quite a gap to fill. Completely different (thankfully). The government of the uk stands behind FSCS. No uk government will let little old ladies lose money from deposits in uk banks and building societies. You are 100% safe in such accounts. Very comforting
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registerme
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Post by registerme on Jul 20, 2017 7:21:50 GMT
Completely different (thankfully). The government of the uk stands behind FSCS. No uk government will let little old ladies lose money from deposits in uk banks and building societies. You are 100% safe in such accounts. I fear that's a little complacent. In direct response to the financial crises of 2008 new rules have been introduced to prevent tax payers being on the hook should (/when) a bank go under. Depositers are included in that. Yes, equity and bondholder should be hit first, but to assume that deposits are 100% safe is, I think, a little dangerous. That's why I spread my funds across institutions and keep below the FSCS limits.
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jonah
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Post by jonah on Jul 20, 2017 7:57:15 GMT
Completely different (thankfully). The government of the uk stands behind FSCS. No uk government will let little old ladies lose money from deposits in uk banks and building societies. You are 100% safe in such accounts. I fear that's a little complacent. In direct response to the financial crises of 2008 new rules have been introduced to prevent tax payers being on the hook should (/when) a bank go under. Depositers are included in that. Yes, equity and bondholder should be hit first, but to assume that deposits are 100% safe is, I think, a little dangerous. That's why I spread my funds across institutions and keep below the FSCS limits. I think that it's fair to say that deposits under Fscs limits* or with ns&i are 100% supported by the uk government. If that isn't enough then we are in enough trouble that worrying about money is the least of our troubles. Other deposits* over fscs limits are still pretty safe in reality, but there are edge cases which could see hair cuts. So if you are cash rich, spreading it between banks** is probably a good idea, especially as you won't be getting any interest any way. * on Fscs eligible organisations. ** with different banking licenses of course.
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robski
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Post by robski on Jul 20, 2017 8:52:58 GMT
It looks to me like the announcement has had a dramatic effect on rolling liquidity
Up until the announcement there was around £15M floating around, after taking into account the matching to be done There havent been any massive matches i can see taking place, and now its down to around £5m
The rates have gone up about 0.3% as well as a result. Start of the week the waiting to be matched was sitting around 2.6% and most of the money that would be matched was at 2.8-2.9% Today thats now clearly changed the bulk of waiting to be matched at 2.9% and some matching at 3%. Could even start matching at 3.1% today depending on loan approvals vs money coming in.
I am still planning on drawing down but there seems to be a delay in that now as well, so more indication they are swamped and people are pulling out.
The rats going up could reset the risk vs reward for me and I may not pull out completely yet, but its got to go up quite a lot relatively quickly or I am still pulling out
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jonah
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Post by jonah on Jul 20, 2017 9:55:47 GMT
I would put a modest amount into rolling @ 3%. I know that this is lower than inflation after tax and that I could get 'locked in', hence the 'modest' part.
It would still be more than I'm getting in FSCS accounts elsewhere, so moving part of that cash would seem appropriate.
I was doing that quite happily for a few months as my 3yr and 5yr repaid but don't want to lend below 3%.
So, if this realistically looks 'bad' enough to push rates up to 3% then RS may be getting a modest deposit from me. Assuming I spot the movement that is, I don't intend to watch them all day...
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Post by closetotheedge on Jul 20, 2017 10:14:59 GMT
As a simple user of RS, AC, Z, LW etc but with the largest amount in RS what inclines me to remain loyal to RS is how am I to know what the other platforms are doing. I read this forum regularly for the comments from more knowledgable users but I still take comfort from the size of RS and whilst the PF gets a lot of negative comments about it there is still quite a chunk of money in it. I think I will move some from rolling across to AC 30 day account for some extra spread but as I worry most about platform risk I cannot get too excited about trusting any of the smaller platforms. The loans I have in RS 5yr at 6.5% are staying. Surely the P2P market is due some weeding out soon with some of the bigger players flexing their balance sheets to grab more dominance.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Jul 20, 2017 10:16:31 GMT
I would put a modest amount into rolling @ 3%. I know that this is lower than inflation after tax and that I could get 'locked in', hence the 'modest' part. It would still be more than I'm getting in FSCS accounts elsewhere, so moving part of that cash would seem appropriate. I was doing that quite happily for a few months as my 3yr and 5yr repaid but don't want to lend below 3%. So, if this realistically looks 'bad' enough to push rates up to 3% then RS may be getting a modest deposit from me. Assuming I spot the movement that is, I don't intend to watch them all day... I have preferred AC's QAA and Octopus Choice as alternatives (not equivalent) to FSCS accounts.
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jonah
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Post by jonah on Jul 20, 2017 10:30:33 GMT
I have preferred AC's QAA and Octopus Choice as alternatives (not equivalent) to FSCS accounts. I have enough cash with AC already (they are my largest current platform). I keep meaning to look more into OC, maybe one to add to the 'to do' list.
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angrysaveruk
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Back and to the left..
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Post by angrysaveruk on Jul 20, 2017 10:33:43 GMT
Biggest risk in the short run is this could trigger a loss of confidence in the platform leading to a large number of people wanting to withdraw their money. Glad I got out when I did.
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Post by buggerthebanks on Jul 20, 2017 10:39:55 GMT
Completely different (thankfully). The government of the uk stands behind FSCS. No uk government will let little old ladies lose money from deposits in uk banks and building societies. You are 100% safe in such accounts. I fear that's a little complacent. In direct response to the financial crises of 2008 new rules have been introduced to prevent tax payers being on the hook should (/when) a bank go under. Depositers are included in that. Yes, equity and bondholder should be hit first, but to assume that deposits are 100% safe is, I think, a little dangerous. That's why I spread my funds across institutions and keep below the FSCS limits. The UK government is insolvent. It's like having a personal guarantee from someone with no net assets.
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dandy
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Post by dandy on Jul 20, 2017 10:45:10 GMT
I fear that's a little complacent. In direct response to the financial crises of 2008 new rules have been introduced to prevent tax payers being on the hook should (/when) a bank go under. Depositers are included in that. Yes, equity and bondholder should be hit first, but to assume that deposits are 100% safe is, I think, a little dangerous. That's why I spread my funds across institutions and keep below the FSCS limits. The UK government is insolvent. It's like having a personal guarantee from someone with no net assets. Except someone with no assets doesn't have an unlimited credit facility with a printing machine
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angrysaveruk
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Back and to the left..
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Post by angrysaveruk on Jul 20, 2017 11:14:19 GMT
I fear that's a little complacent. In direct response to the financial crises of 2008 new rules have been introduced to prevent tax payers being on the hook should (/when) a bank go under. Depositers are included in that. Yes, equity and bondholder should be hit first, but to assume that deposits are 100% safe is, I think, a little dangerous. That's why I spread my funds across institutions and keep below the FSCS limits. The UK government is insolvent. It's like having a personal guarantee from someone with no net assets. Their assets are the companies and population based in the UK who they can tax whatever they want.
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ashtondav
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Post by ashtondav on Jul 20, 2017 12:01:17 GMT
The UK government is insolvent. It's like having a personal guarantee from someone with no net assets. Ok, best load up with bars of gold, tins of baked beans, an AK 47 and head for the hills!
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jul 20, 2017 12:08:51 GMT
Already done that ashtondav, back in 2008/9. Came down from the hills a year later but still got a full tank of gas in the OzBoy Mobile at all times just in case.
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