Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    newOAP
    Force up interest rates
    • #1
    • 7th Dec 12, 9:37 PM
    Force up interest rates 7th Dec 12 at 9:37 PM
    Although it might be very hard to motivate a large enough group of debt free savers, would it make banks, etc and even the government re-think their savings interest rates if every saver threatened to withdraw their savings at the same time. We probably all moan about the low savings interest rates but if everyone withdrew their money, interest rates would have to increase to attract it back again. Could this be a way of forcing up interest rates ?
    Last edited by newOAP; 07-12-2012 at 9:42 PM. Reason: spelling mistake
Page 2
    • Blackdog
    • By Blackdog 8th Dec 12, 11:04 PM
    • 409 Posts
    • 291 Thanks
    Blackdog
    Savings interest rates are only likely to go down further over the next few months. Banks are accessing cheap BOE/Government money so have no need to pay savers decent interest rates. The big question is when will we see the interest rates start to rise again - like everyone else I have no way of knowing but I suspect it will be at least another year before a rise.
    • Thrugelmir
    • By Thrugelmir 8th Dec 12, 11:09 PM
    • 47,778 Posts
    • 39,832 Thanks
    Thrugelmir
    That may be true but it seems a fairly good bet that with the economy in the current state and lending under pressure that rates are not likely to rise quickly or soon.
    Originally posted by jimjames
    The BOE is intentionally holding down interest rates to promote growth.
    "A man who wishes to remove a mountain begins by carrying away the smallest stones first."
  • innovate
    Other than ISA rates increasing very slightly during next year's ISA season......<snip>
    Originally posted by rb10
    I am beginning to think I wouldn't be surprised if we didn't see the usual ISA rate competition next April.
  • marathon man
    I am being tempted by opening an account overseas to get a better rate. I guess that there are complications such as tax deductions, transfer fees and exchange rates but the rates are so much better.
    For instance, ANZ bank in Australia is currently paying the rate of 4.35% per year for just 3 months: http://www.anz.com.au/aus/RateFee/InterestRates/Rates.asp

    I don't think that you can get 4.35% for a 5 year deposit here.
    • jimjames
    • By jimjames 9th Dec 12, 9:50 AM
    • 9,990 Posts
    • 7,990 Thanks
    jimjames
    I am being tempted by opening an account overseas to get a better rate. I guess that there are complications such as tax deductions, transfer fees and exchange rates but the rates are so much better.
    For instance, ANZ bank in Australia is currently paying the rate of 4.35% per year for just 3 months: http://www.anz.com.au/aus/RateFee/InterestRates/Rates.asp

    I don't think that you can get 4.35% for a 5 year deposit here.
    Originally posted by marathon man
    If you are prepared to gamble on exchange rates why wouldn't you just take out a S&S ISA here where you'll get nearly 5% income anyway? Genuinely puzzled why it is seen as an option to go overseas when better rates are available here for the same risk.

    Obviously if you need/spend AUS dollars it isn't the same risk but if you need the money in sterling then there is a huge risk you are taking.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Blackdog
    • By Blackdog 9th Dec 12, 12:22 PM
    • 409 Posts
    • 291 Thanks
    Blackdog
    I am beginning to think I wouldn't be surprised if we didn't see the usual ISA rate competition next April.
    Originally posted by innovate
    I hope you are wrong but I have a funny feeling you might be right!
    • Thrugelmir
    • By Thrugelmir 9th Dec 12, 12:26 PM
    • 47,778 Posts
    • 39,832 Thanks
    Thrugelmir
    For instance, ANZ bank in Australia is currently paying the rate of 4.35% per year for just 3 months:
    Originally posted by marathon man
    Are they offering the same rates in the UK?

    How much would you lose in currency exchange fees.
    "A man who wishes to remove a mountain begins by carrying away the smallest stones first."
  • marathon man
    I haven't researched it yet but the rate is tempting.
    • antrobus
    • By antrobus 9th Dec 12, 1:30 PM
    • 13,447 Posts
    • 18,620 Thanks
    antrobus
    ..
    For instance, ANZ bank in Australia is currently paying the rate of 4.35% per year for just 3 months:...
    Originally posted by marathon man
    That's nothing! You can get 22.50% on the Prominvestbank 1 Year Saving Deposit. (That's Ukrainian in case you're interested.)

    Of course you'll lose a bit in fees and whatnot in executing the transfer. And then there's the exchange rate risk......
  • innovate

    I don't think that you can get 4.35% for a 5 year deposit here.
    Originally posted by marathon man
    You can get 3.9% for 5 years, complete with £85K FSCS protection. Basically risk free, and no faffing about with double taxation challenges or exchange rates.

    Punjab National International.
  • marathon man
    That's nothing! You can get 22.50% on the Prominvestbank 1 Year Saving Deposit. (That's Ukrainian in case you're interested.)
    Originally posted by antrobus
    22.5% ?
    Noted !
    • sabretoothtigger
    • By sabretoothtigger 9th Dec 12, 5:26 PM
    • 9,931 Posts
    • 6,562 Thanks
    sabretoothtigger
    You can get 3.9% for 5 years, complete with £85K FSCS protection. Basically risk free, and no faffing about with double taxation challenges or exchange rates.

    Punjab National International.
    Originally posted by innovate
    UK does have an exchange rate. The rate at which sterling exchanges for useful goods.

    The exchange rate to oil, petrol, gas whatever fuel you need.

    Are we trying to say these things are fixed because we stay at home. The risk is not free, it might be transparent to us but walking into a pane of glass can be painful this is not negated by our confidences in UK vs Australia

    The risk taken is that in five years the exchange rate does not wipe out the interest given. It is quite a high risk.
    ANZ on the other hand you have to risk not five years but can decide daily whether pull the money back?

    Ukraine offers that much as they have higher inflation most likely. I will look up the history of both exchange rates.
    The Asia pacific index invests largely in Australia, that is also my preference and they pay a decent dividend also. Anyone with business or holidaying down under probably has good reason to take the risk



    Last edited by sabretoothtigger; 09-12-2012 at 5:28 PM.
    Tokyo residential prices have gone from 4x London in 1990 to ¼ London in 2014
    There is no other agency of government which can overrule actions that we take
    by Greenspan, Federal Reserve
  • innovate
    UK does have an exchange rate.
    Originally posted by sabretoothtigger
    Sure, but what does this have to do with GBP savings with Punjab National International? It's a UK bank.
    • gadgetmind
    • By gadgetmind 9th Dec 12, 5:36 PM
    • 10,103 Posts
    • 7,789 Thanks
    gadgetmind
    I'd think very few people need to be 100% in cash.
    Originally posted by jimjames
    I'm currently at 10%, which is the lowest I've been for a few years. This is split roughly 50:50 between NS&I linkers and term accounts paying about 3.6%.

    As I've reduced cash, I've gone into a combination of high-yield equities, preference shares and a few corporate bonds.

    As accounts lose bonuses during the next 12 months, I'll probably reduce cash further, but perhaps consider moving more into cyclicals.
    Last edited by gadgetmind; 09-12-2012 at 6:02 PM.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
    • sabretoothtigger
    • By sabretoothtigger 9th Dec 12, 8:02 PM
    • 9,931 Posts
    • 6,562 Thanks
    sabretoothtigger
    Sure, but what does this have to do with GBP savings with Punjab National International? It's a UK bank.
    Originally posted by innovate
    You missed my point. UK imports goods, you buy those goods. You are subject to exchange rates even if you never leave these shores, your money must do so

    Its possible to lose more money in sterling then by buying ahead now and taking the money abroad.
    The speculation then is how useful each country will be, Australia is apparently important to China who we in turn buy alot of things from

    Will that continue, will UK become more productive. The chances imo of strong sterling are really low, we are tied to USA in our likely fate.
    Maybe if we were somehow ascending with closer links to Europe or something like emerging markets even. This governments tenure started with a brief attempt at that but Ive not seen any hope since
    Last edited by sabretoothtigger; 09-12-2012 at 8:08 PM.
    Tokyo residential prices have gone from 4x London in 1990 to ¼ London in 2014
    There is no other agency of government which can overrule actions that we take
    by Greenspan, Federal Reserve
  • innovate
    You missed my point.
    Originally posted by sabretoothtigger
    Yeah you are right, I am still missing it.
    • sabretoothtigger
    • By sabretoothtigger 9th Dec 12, 10:53 PM
    • 9,931 Posts
    • 6,562 Thanks
    sabretoothtigger
    I disagree when you said its risk free. It is simpler to stay in sterling and less effort but its not the lowest risk option

    Bumping up the term to five years is really what makes it dangerous to presume that far ahead

    People are better off paying off bills into the future as a way to increase security by reducing future costs. Since cash returns vs inflation have been negative in the past thats a reasonable option to fix a fuel bill or whatever can be done.

    Its also likely future returns are negative also, taking 5yr and comparing it to now is a bad shortcut imo.
    Tokyo residential prices have gone from 4x London in 1990 to ¼ London in 2014
    There is no other agency of government which can overrule actions that we take
    by Greenspan, Federal Reserve
Welcome to our new Forum!

Our aim's to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,715Posts Today

7,056Users online

Martin's Twitter