Savers 'Not Moving Money Out of Banks'
Contrary to recent reports there has been no exodus of savers from high street banks, new analysis has claimed.Payments association APACS said yesterday that there had been no significant movement of money out of banks and into "risk-free" providers, such as government owned National Savings & Investments (NS&I) and Northern Rock, the BBC reports.Savers received a further boost yesterday, when ministers said that the guaranteed bank deposit limited would be raised from its current level of £35,000 to £50,000. This move was designed to shore up savers' confidence in the financial system, with customer deposits an important source of revenue for banks.This confidence has been severely knocked by recent events. There has been a widespread freeze on inter-bank lending since the bankruptcy declaration of Lehman Brothers last month, with financial firms of how many bad debts tied to falling property markets other firms have on their books.Investors have also voted with their feet, sending bank stocks plunging worldwide. In turn, reports have suggested, customers are voting with their feet and moving their money out of banks, causing further balance sheet uncertainty and further mistrust over inter-bank lending - a vicious circle which has the potential to drive many more firms out of business.Prime minister Gordon Brown has called for calm, saying that the government is well-placed to ride out the volatile markets. "Wherever there has been a problem we have intervened and dealt with it," he told the BBC. APACS monitors the various payments systems used for UK money transfers, including CHAPS and BACS.
Share this..
Related stories
Scottish youths face jobs crunch
It has been revealed that jobseekers allowance claims in Scotland have risen by 72% in the 18 to 24-year-old age group since the recession began. With nearly 40,000 unemployed Scots in this particular age band, funding the jobseekers allowance is costing just under £1.9 million a week. Despite the fact that younger workers across Scotland are desperate to find employment and relieve their own fin...
Read MoreIs Sir Fred Goodwin plotting a return?
While ex-Royal Bank of Scotland chief executive Sir Fred Goodwin has been banished to France since his pension scandal hit the headlines there is a feeling that he is trying to clear the path for a way back into the UK business arena. While he has been ridiculed and abused across the media because of his pension, a pension which was offered to him by the UK government, he is still well known as on...
Read MoreTop questions we get asked at financialAdvice.co.uk
Whilst there are a variety of questions that we answer on the website, there are a number of questions that are raised on a regular basis. We all have different areas of our finances that we wish to address at various times in our lives, but generally the users of the site share the same common goal; financial peace of mind and reassurance be it in relation to their mortgage, pensions, protection...
Read MoreUnions threaten 2010 of discontent
Brendan Barber, the TUC general secretary, has today warned UK businesses and the UK government that no matter which party is elected at the next election there will be further strike action if public sector services are targeted for spending cuts. This is the bluntest warning to date from the union movement regarding further action and comes as the National Rail and RMT dispute moves on to a diff...
Read MoreUK publicans set to strike in 2010
The general workers union, the GMB, it is set to ballot tied pub tenants in early 2010 to test their appetite for potential industrial action against what many believe are costly contracts with pub parent company. The so called Pubcos own around 50% of pubs in the UK and have their tenants tied into allegedly expensive drink supply contracts with some suggestions that the price of a barrel of beer...
Read More