Interst Rates Down again by 1%

LGG_2

And why shouldn't we be able to help our children and grandchildren with our money that we have worked hard to save?
We spend money and save.

yes on its own that is fine but what is being talked about is those crying poverty because the savings rates have dropped yet they have 100's of K worth of savings.they cant have it both ways.

I feel there might be a little green-eyed monster talking there.
What about the considerable contribution deducted from peoples salaries for 40 years to earn this pension. Not everyone in the public service earns a huge salary either.

its more about the plain injustice of it rather than jealousy. when theres one rule for one and one rule for others. public workers taking early retirement in their 50's living off large pensions while others have to work to 65 and beyond and at the end of the day having nothing to show for it. because of poor or non excistant pension schemes and schemes that have collapsed such as E.life.where the public sector is protected by tax payers regardless so they will always be alright. if someone who works in the public sector cannot see the injutice in that then maybe they are just plain gready and have a good dose of the im alright jack syndrome

tuggy12

apt wrote: »

a blinkered Tory who believes what is in the Daily Mail

Isn't it strange how most lefties in the Labour Party always refer to anyone, who dares to disagree with them, using this same hackneyed soundbite.:T

DaftMule

Well, I fall a little between two stools here...but as my only debt is the mortgage and I was lucky enough to remortgage away from NR a few months back to a BoE base rate tracker, I am a happy camper! As a result of the last two reductions, I now save about £500 a month on my mortage ineterst payments!

But, I want to save that £500 not spend it....sorry Gordon Brown but encouraging people to spend money now is just a perpetuation of the cause for this whole mess in the first place. People should be saving their money, digging in to weather the storm, and preparing for the inevitable repurcussions of this massive national dept we are saddling ourselves with. The one sure things is that we will have to pay for it in the years to come.

So, for me, my priorities will be:

1) Maximise ISA usage
then
2) Maximise savings useage while the return is better than option 3)...:
3) Over pay into mortgage.

After I have exhausted 1, 2 and 3 above, then and only then will I consider the extra money I have as "spendable".

earlgrey_3

Old_Slaphead wrote: »

I've also not mentioned how low its been approx 3200 and a lot of people have lost a lot of money(nb actually the high was 6950).

I was simply saying that excl divs net growth over 11 years of New Labout Govt has been -10%. A terrible indictment of their commitment to improving living standards and the general prosperity of the country!!

Yes, if only we'd had Bush and the Republican Party or their equivalent here then the FTSE would be doing as well as the US Dow wouldn't it.

Mind you I did hear a little rumour that shares and banks had collapsed in the US too. Was it mentioned in the paper you read? :rolleyes:

Old_Slaphead

FWIW even given the fact that US has been governed by a walking disaster area (and that's putting it mildly) for the last 8 years, at least since 1997 the DJ index has managed an increase from 7200 to 8500 (ie +18% or an outperformance of almost exactly 30% against FTSE100).

That despite the fact that we've had the benefit of the greatest chancellor in the history of the universe on our side (nb - great deal on gold bullion sale and nice work demolising UK private pension provision too Gord)

tuggy12

earlgrey wrote: »

Yes, if only we'd had Bush and the Republican Party or their equivalent here then the FTSE would be doing as well as the US Dow wouldn't it.

Mind you I did hear a little rumour that shares and banks had collapsed in the US too. Was it mentioned in the paper you read? :rolleyes:

Back to school for you I'm afraid.:T

Quoting Keynes and than cannot get even basic maths correct:rotfl:

Fred_Bear_2

MiserlyMartin wrote: »

Inflation is 4.5%. Base rate is 2%, please explain how we are beating inflation?

Bank rate is 2% but savings rates are 5+%
Prices are 4.5% higher than a year ago, but are now probably falling.

Old_Slaphead

Savings rates are also falling rapidly - by next month they'll be down to around 2%

Fred_Bear_2

Old_Slaphead wrote: »

Savings rates are also falling rapidly - by next month they'll be down to around 2%

But you can lock into 5+% for up to 3 years. That's what I've done.

MiserlyMartin

Fred_Bear wrote: »

Bank rate is 2% but savings rates are 5+%
Prices are 4.5% higher than a year ago, but are now probably falling.

5% after tax is 4% (and thats lower rate tax). With inflation at 4.5% we are losing .5%. Inflation had better fall soon