How safe is saving and how risky is investing?
This is Money Podcast
This is Money
4.1 • 650 Ratings
🗓️ 21 September 2018
⏱️ 48 minutes
🧾️ Download transcript
Summary
As banks went kaput a decade ago, the safety of our savings was thrust into the limelight.
Most had never considered that cash in the bank was at risk and knew little about the Financial Services Compensation Scheme. When Icesave blew up a year after the Northern Rock collapse things changed dramatically.
We should all be up to speed now, but how safe are your savings?
On this week’s podcast, Simon Lambert, Tanya Jefferies and Georgie Frost we look at savings protection but also how you could end up losing money by sticking with cash.
Ironically, worries about banks a decade ago triggered a flight to safety and more people stashing money in savings accounts rather than investing.
But had people invested as Lehman Brothers collapsed they would have more than doubled their money by now.
Taking the risk as the world appeared to be falling apart would have been the right move. Yet, at that point the stock market was already down 20% and fell by that again before it hit the bottom, so how many would have been brave enough?
Also on this week’s show, we discuss how easy it might be to hit the £1million pension lifetime allowance sand whether your car might fail its next MOT.
Transcript
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| 0:00.0 | Welcome to This Is Money podcast in partnership with NS&I. I'm your host, Georgie Frost, |
| 0:06.6 | and alongside editor Simon Lambert and I today is pensions expert Tanya Jeffries. |
| 0:11.3 | And coming up, we talk safety and risk. |
| 0:14.1 | For UK savers 10 years on from the financial crisis, |
| 0:17.9 | are you ready to trust a coterie of banks you've never heard of to get a slightly |
| 0:22.4 | better rate of return? And where do we go if something goes wrong? Also, where some see |
| 0:28.7 | misfortune, others see opportunity, how brave investors could be quids in now. But by low and |
| 0:34.6 | sell high is not for the faint-hearted. So Simon gives us some tips for holding our nerve and identifying opportunities. |
| 0:41.7 | Also today, despite IT fails and hacking risks, banks continue to push us online as more and more branches disappear from the High Street. |
| 0:49.8 | Has Nat West come up with a good compromise? |
| 0:52.6 | How much can you put into a pension tax-free over your lifetime |
| 0:56.2 | and are more of us driving around in risky cars? |
| 1:00.5 | All that and plenty more coming up and don't forget, |
| 1:02.4 | you can stay up to date with all the latest breaking money news. |
| 1:04.9 | Just go to thisismoney.com.uk or download the app. |
| 1:09.9 | This is Money. Brought to you in partnership with NS&I, where safer savings set you free. |
| 1:17.4 | Now, forget Lehman Brothers, well, don't, but for UK savers, Ice Save is the name that will send the greatest chill down their collective spines. |
| 1:26.5 | If you remember, on Tuesday, October the 7th, 2008. |
| 1:30.3 | Icelandic Bank Landisbankie, which ran Ice Save, collapsed and it left more than 200,000 |
| 1:37.1 | British savers fearing for their cash. Now, 10 years on, those scars still remain, not helped by an |
| 1:42.7 | environment of low interest rates. |
| 1:45.0 | If you want to get a good rate of return, though, you're going to have to think outside the box. |
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