38- £100k bank deposit gurantee??? There is no such thing as a risk free investment and the last thing we should be doing is nationalising banking risk. Yet another example of namby-pamby government.
Surely a better solution would be for banks / building societies to offer optional deposit protection in the form of lower interest. In effect we will now have a compulsory insurance as if it is funded by a levy on banks, they will cut interest rates on all eposits to compensate. And then you have the issue of how the levy will be invested, in an insurance company? They are far less secure than banks. No doubt the cash will find it's way into teh Treasury and be used for "investment" in increased public sector salaries.
Maybe, and call me a cynic if you will, that teh Govt and BoE know that if they big up this story the lumpen masses won't notice their salaries and savings being eaten up by inflation.
Anyone with a decent sum who doesn't take professional advice or educate themselves on how to protect it deserve what they get.
"Be Right and Sit Tight" - Jesse Livermore, trading legend...