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  • FIRST POST
    • whattochoose
    • By whattochoose 16th Oct 16, 11:53 AM
    • 185Posts
    • 34Thanks
    whattochoose
    Grounds for optimism?
    • #1
    • 16th Oct 16, 11:53 AM
    Grounds for optimism? 16th Oct 16 at 11:53 AM
    http://www.express.co.uk/news/politics/718461/Savers-savings-boost-government-change-interest-rates-investing
Page 1
    • ArmyDilllo
    • By ArmyDilllo 16th Oct 16, 12:12 PM
    • 76 Posts
    • 168 Thanks
    ArmyDilllo
    • #2
    • 16th Oct 16, 12:12 PM
    • #2
    • 16th Oct 16, 12:12 PM
    Depends on your point of view.

    I gave up on traditional savings vehicles in 2002, moving to pensions and share based forms of investment.
    While watching savings rates tank, my own, with quite modest levels of risk, have achieved admirable annual growth/returns.
    Currently this is above 16% (average per annum), but I accept that with Brexit this is somewhat unusual;
    I'm only trying to achieve anything greater than 7 to 8% p.a. as a personal average yearly trend.

    Because I have done this I have significantly increased my wealth during this time.
    But I might now be considered as a 'Have', having just retired with a healthy pot behind me.
    If that nice Mr. Hammond (my local MP) starts taking from the 'Haves' to compensate the 'Havenots', I will not be pleased.
    Especially since I had to work long hours and make sacrifices when I was a 'Havenot' to become a 'Have'.

    Since Brexit the whole pattern of normality has been turned upside down.
    The FTSE has reached record breaking levels because the pound has dropped as investors believe their money is safer outside the U.K. (odd, since I've made so much from it and am forecasting more to come).
    But when you actually look at it, with the pound worth so much less than it was, the FTSE is actually worth 6% less than it would have been reaching the same figures before the referendum.
    I think this may provide the U.K. with more protection than other players against the next crash that may be waiting for us all around the corner.

    { 8-]
    Last edited by ArmyDilllo; 16-10-2016 at 12:16 PM.
    Save 20k in 2016 #143: achieved £23,762.38 of £20,000 target
    Retired 17:30, Friday 30Sep16 (aged 56).
    • jimjames
    • By jimjames 16th Oct 16, 12:21 PM
    • 10,836 Posts
    • 8,902 Thanks
    jimjames
    • #3
    • 16th Oct 16, 12:21 PM
    • #3
    • 16th Oct 16, 12:21 PM
    The article is a week or so old based on a comment at the Tory party conference where other comments were backtracked within days so I wouldn't hold your breath.

    Why not make the most of the decent rates that are actually available now and have been for the last 4 or so years, before they get chopped?
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Linton
    • By Linton 16th Oct 16, 12:54 PM
    • 6,935 Posts
    • 6,525 Thanks
    Linton
    • #4
    • 16th Oct 16, 12:54 PM
    • #4
    • 16th Oct 16, 12:54 PM
    If interest rates go up what will happen to the those hard working families' mortgages? Such families generally pay far more in mortgage interest than they gain from bank savings interest.
    • talexuser
    • By talexuser 16th Oct 16, 1:54 PM
    • 2,091 Posts
    • 1,557 Thanks
    talexuser
    • #5
    • 16th Oct 16, 1:54 PM
    • #5
    • 16th Oct 16, 1:54 PM
    We have to wait till the autumn statement I guess until we find out what this amazing deal for savers will be. Will it be another granny bond, fixed term, or is that too much like copying Osborne who we have sent to Siberia? Or will it be a national savings product that can benifit everyone that beats market rates, surely the the bank paymasters would not like that?
    • premierfella
    • By premierfella 16th Oct 16, 2:16 PM
    • 851 Posts
    • 466 Thanks
    premierfella
    • #6
    • 16th Oct 16, 2:16 PM
    • #6
    • 16th Oct 16, 2:16 PM
    Of course we have to wait to see what the government does in the Autumn statement, which is clearly going to be a change of policy direction to some degree.

    However, in terms of the speculation in this piece of journalism spin:
    - QE is monetary policy, which the government doesn't directly control
    - Inflation is heading up, and we know what that does for real returns if the MPC still has to maintain a loose monetary policy for other reasons
    - NS&I higher interest bonds would just be the government giving away money they've raised from the same individuals via tax (similar to giving away money to borrowers to supposedly deal with the issue of high house prices, it really doesn't solve anything and is just smoke and mirrors)
    - NS&I's savings bonds last time were fairly modest in amount per person anyway.

    I think some proper light at the end of the long tunnel for savers is some way off yet. In the meantime there will be this sort of headline-grabbing stuff which (I concede) should help savers with very modest savings.
    • whattochoose
    • By whattochoose 16th Oct 16, 2:53 PM
    • 185 Posts
    • 34 Thanks
    whattochoose
    • #7
    • 16th Oct 16, 2:53 PM
    • #7
    • 16th Oct 16, 2:53 PM
    I have very modest savings. I have a 2 year fixed rate ISA with Halifax paying 2% which matures next July, so I'm not touching that at present.
    I also took the time and trouble about 6 months ago to open a Santander 1-2-3 account, which necessitated switching direct debits, but left me with a nice warm feeling that I would be receiving 3% interest on the £20000 I had invested in the account, notwithstanding the £5 monthly fee.
    Well, we all know what's happened to that particular account, and I suppose I'm wondering whether any announcement in the Autumn statement will provide me with any incentive to re-invest my money, mindful of the fact that, while the 1.5% soon to be on offer with the Santander account isn't that great, it's still much better than much of what's on offer in these current thin times for savers. Also not forgetting that any re-investment of funds might involve a tedious switching of my direct debits once again, dependent on any possible closure of the Santander account.
    • jimjames
    • By jimjames 16th Oct 16, 4:40 PM
    • 10,836 Posts
    • 8,902 Thanks
    jimjames
    • #8
    • 16th Oct 16, 4:40 PM
    • #8
    • 16th Oct 16, 4:40 PM
    Also not forgetting that any re-investment of funds might involve a tedious switching of my direct debits once again, dependent on any possible closure of the Santander account.
    Originally posted by whattochoose
    Not quite sure what you mean by the "tedious" switching of DDs. If you use the current account switch then there is generally zero effort from you required and nothing that could be called tedious.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Ballard
    • By Ballard 16th Oct 16, 4:59 PM
    • 1,248 Posts
    • 922 Thanks
    Ballard
    • #9
    • 16th Oct 16, 4:59 PM
    • #9
    • 16th Oct 16, 4:59 PM
    As painful as it has been for savers over the last few years I don't personally see that improving the lot of savers should be a priority.

    We have recently been told that there's no extra money for the NHS. As I understand it, those unable to work through disability have had their benefits frozen and injured military are living on the streets. Just three simple examples of areas where I'd have thought should be above savers in the pecking order.
    I got a letter from the government the other day. I opened it and read it. It said they were suckers.
    • bigadaj
    • By bigadaj 16th Oct 16, 5:51 PM
    • 7,798 Posts
    • 4,748 Thanks
    bigadaj
    As painful as it has been for savers over the last few years I don't personally see that improving the lot of savers should be a priority.

    We have recently been told that there's no extra money for the NHS. As I understand it, those unable to work through disability have had their benefits frozen and injured military are living on the streets. Just three simple examples of areas where I'd have thought should be above savers in the pecking order.
    Originally posted by Ballard
    That your opinion, others will differ.

    The NHS is just a huge money pit, the extra money it wants is unlimited, so that apparent need can never be fulfilled.

    Disability payments are a very mixed bag, many have genuine need and will suffer hardship, others have met a system requirement and could do more in their situation to aid themselves. Similarly for the forces then extra help is necessary for some but the nature of the forces means that a fair number of ex personnel have always struggled because their lives are micro managed through their employment, an argument for better management of those that leave by the forces hierarchy.

    Also nine of those issues are directly related to improving the lot of savers, so it's not really an either or answer.
    • Ballard
    • By Ballard 17th Oct 16, 8:15 AM
    • 1,248 Posts
    • 922 Thanks
    Ballard
    Also none of those issues are directly related to improving the lot of savers, so it's not really an either or answer.
    Originally posted by bigadaj
    But in these times of austerity we are told that there's no money to spare so why spend some on those who need it least?
    I got a letter from the government the other day. I opened it and read it. It said they were suckers.
    • bigadaj
    • By bigadaj 17th Oct 16, 3:48 PM
    • 7,798 Posts
    • 4,748 Thanks
    bigadaj
    But in these times of austerity we are told that there's no money to spare so why spend some on those who need it least?
    Originally posted by Ballard
    I'm not sure they would agree that they need it least.

    We still have multi millionaires paying single figure tax rates, most would suggest these are a less deserving lot of any largesse.

    Many of those savers will be pre baby boomers who have saved for years, always been averse to benefits and been happy with savings at low interest rates because they are risk averse and see the stock market as gambling.

    The logical course of action for such people now, with possibly low tens of thousands in savings, is to spend their savings now, and give that many will be in basic state lens ions rely in benefit top ups to make up the shortfall, this is what most would recommend.

    The net result would of course be a much larger burden on the government in the payment of those benefits, leading to larger deficits, borrowing etc etc
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