shimself
Member of DD Central
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Post by shimself on Feb 12, 2018 20:20:07 GMT
Justus are giving 1.2% interest (ie 0.1% a month) on moneys in the holding account.
Not very interesting except this is a client account at barclays so it's probably in effect FSCS guaranteed. Isn't it?
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Post by justuslee on Feb 26, 2018 10:09:49 GMT
There's been a major overhaul of the banking system that goes way beyond the FSCS - It's called Ring-Fenced Banking. Here's the content from my recent LinkedIN article on the subject.
"It's not grabbing many headlines, because most people don't want you to know it's taken nearly 10 years to put in place the appropriate legislation to prevent another run on a UK bank - however 2018 is a big deal for UK banking and people need to understand the implications.
The 2008 crash happened because of casino investment bankers, and not retail bank borrowers and savers. In fact, the Northern Rock mortgage borrowers and savers have been a hugely profitable group of people for the investment bankers since the UK tax payer bailed the bank out. Investment bankers have been making a fortune out of Northern Rock savers and borrowers in the last 10 years.
Why is this new legislation so important?
James Proudman from the Prudential Regulatory Authority stated in an interview with FT.com "Ring-fencing is a vital piece of the post-crisis reform architecture"
Ring-fencing reduces the possibility that essential banking services used by ordinary savers are put at risk by a failure in another part of the business or the global financial system.
In simple terms, historically UK Bank's have operated with 2 banking divisions, Investment Bank and Retail Bank. Previously the Investment Bank was gambling with Retail Bank savers hard earned cash on the stock market - and if the daily bets went the wrong way, then the UK's Retail Bank picked up the bill.
One day in 2008 the doubling up at the casino didn't work, and the Retail Bank's couldn't cover the daily losses - GAME OVER.
The new banking reforms make it very clear; your cash will either be held in a bank that's either Ring-fenced (created not to fail) or Non- Ring-fenced (allowed to fail).
"
I can confirm that we received notification yesterday that the JustUs client accounts will be sat in the Barclays Ring-fenced bank.
"
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