Interst Rates Down again by 1%

Old_Slaphead

apt wrote: »

While I feel sorry for those that have to rely on savings for income.........

If they'd acted instead of wanting to whinge savers will be getting a good return for 2009.

Agreed but many of those reliant on interest income are the elderly who, in the main, tend not to be financially savvy. They're the ones that will suffer - and the £60 "bonus" announced recently by the Gov't will not significantly offset their loss. More poverty in old age for many - this at a time when Gov't should be encouraging prudence rather than rewarding profligacy!

In addition - many of the people (some with decent jobs and secure incomes) that will benefit are the ones with several year old mortgages, with plenty of equity in their houses who are not in 'difficult times'. For them, lower mortgage rates will indeed be a windfall. I know one or two very well-off people who are rubbing their hands over this.

nilrem_2

Also there have been plenty of opportunities to get fixed rates of at least 6% for the next year. If they'd acted instead of wanting to whinge savers will be getting a good return for 2009.

You also need to take into account that quite a few savers (including myself) had money tied up in Fixed rate bonds with Icesave so when they crashed our cash was locked from us for almost 8 weeks, by the time we got our cash back, some as recent as Monday 1st Dec all the decent high interest fixed accounts had been withdrawn.

Stavros_3

Greedy banks, as soon as the rate drops, they hit the savers straight away, but fight like hell not to pass the full cut onto borrowers, look at HSBC for example

blondieleopard

roddydogs wrote: »

Once again all Savers will have to pay for others Profligacy........:mad:

absolutely agree...but I have been saying for ages... ..that if everyone was as mean a git as me.......capitalism would have collapsed donkeys yrs ago....

have driven my self stupid recently chasing high rates and transferring monies....as I live on my savings..like many fixed income ppl and older ppl...and I am also on a fixed rate mort..so do not benefit from lower interest rates...double whammy if you ask me....

and I do feel really sorry for all those suffering from crunch....and mort probs..and businesses....who cannot get credit..etc...
cos it is the ghastly greedy bankers wot done it...

however, I am getting to point that I will withdraw ..all my cash...over £150K and stick in the safe.....pinned under floor...safe sales have increased 40% in recent months...cos keeping that money in banks..with hardly any return...is NO INCENTIVE.....and banks are making fools of us.....

now if WE ALL withdraw our savings......and stick at home...then the govt would seriously have to address savers concerns...govt cannot keep pumping
tax payers money into banks to increase fluidity....
how many billions would be xtracted from market if we all withdrew our monies....BILLIONS.....

as usual govt is banking on savers just taking the hit and putting up with low rates....

and I am getting to that point.....no one is getting access to my money...unless they pay me a decent rate.......so they can all go get
stuffed...

the govt should be offering savers......govt bonds..national savers rates....at attractive rates to encourage more savers..to encourage fluidity...to underpin morts..etc....loans....credit etc..for those who need it...why should we take the hit....

I am giving it until nxt % rate reduction..and then whipping the whole lot out...

blondieleopard

roddydogs wrote: »

Once again all Savers will have to pay for others Profligacy........:mad:

absolutely agree...but I have been saying for ages... ..that if everyone was as mean a git as me.......capitalism would have collapsed donkeys yrs ago....

have driven my self stupid recently chasing high rates and transferring monies....as I live on my savings..like many fixed income ppl and older ppl...and I am also on a fixed rate mort..so do not benefit from lower interest rates...double whammy if you ask me....

and I do feel really sorry for all those suffering from crunch....and mort probs..and businesses....who cannot get credit..etc...
cos it is the ghastly greedy bankers wot done it...

however, I am getting to point that I will withdraw ..all my cash...over £150K and stick in the safe.....pinned under floor...safe sales have increased 40% in recent months...cos keeping that money in banks..with hardly any return...is NO INCENTIVE.....and banks are making fools of us.....

now if WE ALL withdraw our savings......and stick at home...then the govt would seriously have to address savers concerns...govt cannot keep pumping
tax payers money into banks to increase fluidity....
how many billions would be xtracted from market if we all withdrew our monies....BILLIONS.....

as usual govt is banking on savers just taking the hit and putting up with low rates....

and I am getting to that point.....no one is getting access to my money...unless they pay me a decent rate.......so they can all go get
stuffed...

the govt should be offering savers......govt bonds..national savers rates....at attractive rates to encourage more savers..to encourage fluidity...to underpin morts..etc....loans....credit etc..for those who need it...why should we take the hit....

I am giving it until nxt % rate reduction..and then whipping the whole lot out...

aardvaak

Old_Slaphead wrote: »

Agreed but many of those reliant on interest income are the elderly who, in the main, tend not to be financially savvy. They're the ones that will suffer - and the £60 "bonus" announced recently by the Gov't will not significantly offset their loss. More poverty in old age for many - this at a time when Gov't should be encouraging prudence rather than rewarding profligacy!.

It is not just the elderly being affected I am in my early 50's no Debt,own home outright and my only form of income is my savings - if I spend any of it I get even less return to live off - I can only see the suicide rate going up and up.

derbyjon

A few months ago we were all getting around 7% interest compared with 5.8% inflation.

If in a year's time we're getting 1.5% interest compared with 0.3% inflation then isn't our money just as well off as before?

aqueoushumour01

derbyjon wrote: »

A few months ago we were all getting around 7% interest compared with 5.8% inflation.

If in a year's time we're getting 1.5% interest compared with 0.3% inflation then isn't our money just as well off as before?

depends if the offical inflation measure accurately captures the costs we face

nilrem_2

derbyjon wrote: »

A few months ago we were all getting around 7% interest compared with 5.8% inflation.

If in a year's time we're getting 1.5% interest compared with 0.3% inflation then isn't our money just as well off as before?

No, people will still have to pay for Council tax, heating bills, water rates and Electricity, these things never go down in price, at best they will stay as high as they are at the moment but savers will be receiving less interest to be able to pay for them.

rb10

nilrem wrote: »

You also need to take into account that quite a few savers (including myself) had money tied up in Fixed rate bonds with Icesave so when they crashed our cash was locked from us for almost 8 weeks, by the time we got our cash back, some as recent as Monday 1st Dec all the decent high interest fixed accounts had been withdrawn.

Not all. Halifax's Web Saver Reward only needed £50 to start it up, you then get a fixed rate for a year (5%) with the ability to add further funds at any time. So as long as you could have found £50 to put in it by 1st December, you could have added the Icesave money when it arrived, guaranteeing yourself 5% for the whole year.