A few months back I would have meant this post in jest but now.....
Given the bank collapses and now the IMF Global Meltdown warning, should I be pulling my savings out the bank?
I know the cons - loss of further interest, loss of ISA tax free status built up over the last 7 years, risks of theft, fire etc, but still I'd have my do$h where I could see it.
Should the world's financial systems collapse would money have any further relevance?
And no you can't have my address :)
Bookmakers hide large quantities of cash at home without a problem - "floorboarding" makes it almost impossible for anyone to find it without torturing the occupants or dismantling the house. The biggest dangers are:
1) Accidental loss or destruction. 2) You die without telling relative where the cash is and they can never find it.It is a valid means of saving in these times. If you cash your shares and they go down 30% and you have your cash in a box and then go out and rebuy those share, that can be a pretty impressive rate of interest.
Personally, I don't think so (though I'm no expert). If things get so bad that the Financial Services Compensation Scheme is unable to pay out the pound could be heading the same way as the Zimbabwe dollar.
I think the best thing to do is just spread your money around several banks (even if you have less than 50k) so that in the event of a problem you will have access to funds while the chancellor, PM and FSA argue about who should pay. For example, it looks like people (retail depositors at least) who had money in Icesave will get it all back, but if then needed it last Thursday they still have a problem.
Perhaps you should invest in tinned food and a Swiss army knife then head for the hills? :)
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You are not alone..... thats the reason why there has been a 250% rise in safe sales this last month! I gave my daughter a lesson in crude economics as a result of this debarcle....and I gave her a question which was where would you put your dosh if you thought every bank...and finally every building society was going to the wall.... she said under the mattress and I said national Savings as the final bastion of security.... then a week later I reminded her of her suggestion... and I said that things had got so bad that I was recommending her solution!
You are not alone..... thats the reason why there has been a 250% rise in safe sales this last month! I gave my daughter a lesson in crude economics as a result of this debarcle....and I gave her a question which was where would you put your dosh if you thought every bank...and finally every building society was going to the wall.... she said under the mattress and I said national Savings as the final bastion of security.... then a week later I reminded her of her suggestion... and I said that things had got so bad that I was recommending her solution!
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