A SIMPLE QUESTION

[Straight Shooter]

Question is:

When you deposit your money into your bank..ANY bank , do you think its still yours

HOW do you think the bank views you ...a customer or a creditor .

a simple yes or no will do it...unless you desire to elaborate .

[Scythe13]

Yes and no. My money, their hands, only mine again when taken out.

Creditor for deposits, customer for mortgage.

Total mug - how they see me in general.

[Geordie_Rob]

Only mine when the notes are in my hand mate

[Spandex228]

No in the worst case scenario, they did it in Cyprus they could do it here !!!

[Steve]

Once it's in the bank it's not yours, unless it's in a safe deposit box. You have invested the money into the bank.

[MaryN]

If my reading of various articles is accurate, the UK Govt. has (or is about to) bring in Bail-In legislation, courtesy of being ordered to by the EU. So effectively, your money is only yours if there are no problems with the Banks. I know that there is the guarantee figure of £85,000 (is this per person? not sure), but I wouldn't trust the Govt to stick to that figure if we have another Lehmann moment!

[Tarrel]

Yes, it's per person. Joint accounts have double the protection.

To be honest, if a major financial upheaval caused all our major high street banks to go t*ts up, I can't see the government being able to make good on that guarantee. I think the guarantee was brought in to cover a scenario where one bank goes under through mismanagement or an unexpected random event. The kinds of shock wave that are likely to hit one bank will just as probably bring the others down in short order.

I'm not relying on it.

[Mortblanc]

Another simple question will answer how the government allocates ownership of those funds.

Does your guarantee system insure the bank or the deposit.

In other words, if your bank goes under and the government steps in can you walk into any bank with a government voucher in hand and retrieve your insured funds or do you work it out through the now defunct bank, waiting for the government to send them the money?

[Steve]

I would be concerned that the Govt would simply issue me with £85k of Government Bonds. This would fulfill their obligation, but as everybody rushed to sell them the price would crash.

[Scythe13]

I've been thinking about the tangent this thread has gone in, and I'm jumping onto it.

With the £85'000 that's bee put in place, that is the guarantee that all the people in the UK will have £85'000 available to cover their funds in the bank (but really, how many of us have £85'000 in their bank account?).

With this, and the little research I've done, I cannot see any specific response, I.E. how the money will be repaid. Will it be cash available from the bank, gov bonds, or what. I've not found a response, but it summarises to say 'the customer's deposits will be secure/safe to the amount of £85'000.' So the specifics are unclear at the moment. Anyone know an answer to this.

In theory, and potentially in practice, they could simply print the money (as we're no longer on the gold standard) and put it into the banks. Cool idea, but that's a recipe for inflation….or is it the definition?! haha. For information on how this will likely turn out, check Zimbabwe, or the Green Back on google. Okay they're extreme versions, but you never know.

The thing I'm more concerned with, those in the know are, once again, saving up precious metals and the alike.