SOS Save Our Savers

Robert_Kent · 25 January 2010 at 3:05PM

I just see the new savers campaign started yesterday. May be of interest to posters here. I am unable to post a link here but a simple search of the campaign name will identify.

I for one have registered as are many of my friends. You may wish to do so.

It would be great if Martin Lewis and other members of the media were also to support - the underlying problem of artificially low interest rates is perhaps of the same level of importance as the unfair bank charges issue that was well supported.

redpete · 25 January 2010 at 3:50PM

Looking at some of the things they stand for I don't think I'll be joining.

Make it easier to save, simplify the rules that make pensions and investments so complex

Take away some of the rules and complexity and you end up with more unfairness.

Resolve the unfair disparity which makes public sector pensions more generous and secure than in the private sector

Why unfair? Do they expect public sector pensions to be made less generous and secure, how is that fair to those who have worked for years with the expectation of a pension? Or do they expect private sector pensions to be made more secure and generous, if so how will this be paid for?

Use a fair and honest rate for inflation

There is no measure that is fair to everyone. It is clearly stated how each of the measures is calculated and what the 'basket' is that it's based on.

Ensure that savings are properly protected

Isn't the present £50k protection for each persons savings with any institution enough? If not, how will it be paid for? How much risk do they think people should be allowed to take with the prospect of higher returns?

- Acknowledge that savers are pivotal to the economic success of the UK
- Publish a clear policy for savers and savings
- Encourage saving and make sure savers are properly rewarded
- Replace short-termism with long term planning and investment
- Spend prudently
- Encourage entrepreneurism and investment, create an economy that is worthwhile for savers to invest in

All 'motherhood and apple pie' statements that few would disagree with but which are largely meaningless.

Robert_Kent · 25 January 2010 at 4:09PM

Dear RedPete,

Thank you for taking the time to read my post and indeed replying.
It is for you to decide whether the campaign is worth supporting and it is very easy to find specifics as to why one campaign or another does not meet an inmdividual's desires or priorities.

I, however, would support any campaign that might encourage the government to focus for once away from the "plight of borrowers" and give thought to the concerns of many retired savers simply looking support a modest standard of living from hard earned savings.

bendix · 25 January 2010 at 4:15PM

Is it in the remit of Save our Savers to influence global macroeconomic influences to give them higher interest rates?

What an utterly ridiculous campaign.

When will the whiners and complainers realise that REAL interest rates today are higher than at any point in the last thirty years?

God, the financial maturity of this bulletin board is frightening sometimes.

Masomnia · 25 January 2010 at 4:19PM

' - Replace short-termism with long term planning and investment'

One purpose of low interest rates is to encourage investment! Notice the market bounce, surely partly down to low interest rates and people investing money rather than choosing to save.

Masomnia · 25 January 2010 at 4:20PM

bendix wrote: »

When will the whiners and complainers realise that REAL interest rates today are higher than at any point in the last thirty years

Indeed. I'd like someone to explain to me what 'artificially low' rates means? Surely the rate is whatever the bank says it is, whether low or high.

jon3001 · 25 January 2010 at 4:27PM

Yeah - it was quite annoying last year to keep reading the howls of pensioners who were happy getting 6.5% on their savings when RPI was at 5% but didn't like getting 2% on their savings when RPI was at 0%.

Reaper · 25 January 2010 at 4:29PM

Robert_Kent wrote: »

give thought to the concerns of many retired savers simply looking support a modest standard of living from hard earned savings.

O dear, here we go again. I assume you are talking about retired people who "live off the interest".

Living off the interest is an illusion and does not preserve capital. The only way to do that is instead of taking out all the interest you put back an amount equal to inflation.

If you did that then you would be well off because recently the difference between savings rates and inflation has been good (the current month being the exception).

"Living off the interest" means in real terms you eat into the capital rapidly during high inflation and slowly during low inflation giving the illusion of a drop in income.

Robert_Kent · 25 January 2010 at 4:37PM

Oh Dear judging from the comments so far I seem to have trodden on a "few expert toes". Certainly not my intention. Nor to "whine and complain".

My post was simply to allow those people with concerns for the poor return on savings we are achieving these days the prospect of supporting a (perhaps the first) campaign to register those concerns.

Hopefully those with an interest in supporting the campaign (incidentally I have no connection to it - other than being a saver presently obliged to maintain a myriad of accounts in order to sit safely within the FSCS limits) will not be deterred by critical comments and make their own minds up as to whether the campaign will give a voice to savers.

Lokolo · 25 January 2010 at 4:40PM

Robert_Kent wrote: »

Oh Dear judging from the comments so far I seem to have trodden on a "few expert toes". Certainly not my intention. Nor to "whine and complain".

My post was simply to allow those people with concerns for the poor return on savings we are achieving these days the prospect of supporting a (perhaps the first) campaign to register those concerns.

Hopefully those with an interest in supporting the campaign (incidentally I have no connection to it - other than being a saver presently obliged to maintain a myriad of accounts in order to sit safely within the FSCS limits) will not be deterred by critical comments and make their own minds up as to whether the campaign will give a voice to savers.

I've been getting 3% on my savings for around the past year. Over that time, inflation has been negative. So tbh, I've been getting a decent savings rate!

The returns are only poor to those that are only looking on one side. To see the real benefit you should look at inflation too. Then when you look at that, you can see you're getting an OK deal.

(although now that inflation has rocketted that could cause a different situation!)

bendix · 25 January 2010 at 4:44PM

Robert_Kent wrote: »

Oh Dear judging from the comments so far I seem to have trodden on a "few expert toes". Certainly not my intention. Nor to "whine and complain".

My post was simply to allow those people with concerns for the poor return on savings we are achieving these days the prospect of supporting a (perhaps the first) campaign to register those concerns.

Hopefully those with an interest in supporting the campaign (incidentally I have no connection to it - other than being a saver presently obliged to maintain a myriad of accounts in order to sit safely within the FSCS limits) will not be deterred by critical comments and make their own minds up as to whether the campaign will give a voice to savers.

You see. You just don't get it do you?

You continue to persist with this myth that you are getting a poor return on your savings.

WRONG. You are getting the best return on your savings in decades. Literally.

Which part of that are you finding hard to understand?

SOS Save Our Savers

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