Bookmark at social bookmark:
The Northern Rock crisis was a nasty reminder to us all that keeping your money in the bank isn’t quite the cast-iron, risk-free option that we like to imagine it is. And despite the Government’s panicky blanket guarantee that no depositor would lose their savings, consumers are understandably worried that if one bank could go to the wall, then others might follow suit. So are any banks safe?
It’s important first to understand what caused Northern Rock’s downfall. One way banks make money is by attracting savings from depositors and then lending them to people looking for loans, getting more in interest on the loans than they have to pay out to attract the savings.
But Northern Rock relied mainly on borrowing money cheaply in the short term from other banks in order then to lend to long-term mortgage borrowers. This worked fine until the fear caused by the erupting US subprime crisis caused the ‘money markets’ to seize up, abruptly cutting off Northern Rock’s funding and leaving it with short-term debts it couldn’t afford to roll over.
(Article continues below)It is common knowledge that Americans dont save. Instead, they spend every penny they can get their hands on and more. Personal debt is at record levels and the
What does your credit file say about you?
Most of us give the matter little thought, but these days, whether you are applying for a mortgage, a personal loan, or just a store card, you will be leaving w
How to find the best-paying savings accou
It is more than a month since the Bank of England raised the base rate by a quarter of a percentage point to 4.75%, but most big banks are yet to pass on the ri
Knock-Knock-Knock Who's there? The IRS! The next quarterly payment of estimated income tax for the self-employed is not far off. Network marketers who receive a
If you are a Small Business Owner or Self-Employed Person, there's one especially lucrative tax break that not only puts money in your pocket, it also makes the
