Interst Rates Down again by 1%

MiserlyMartin

tuggy12 wrote: »

New / Old Labour's Legacy

Private Pensions............................Knackered

Interest Rates................................Knackered

Inflation.........................................Knackered

Jobs..............................................Knackered

House Prices.................................Knackered

Immigration Control........................Knackered

World Peace.................................Knackered

Please feel free to add

UK Gilts........................................Knackered

I switched my pension into gilts. It should have been a safe move to protect against the stock market falls. But then Gordon started bailing out the banks and over borrowing. So he has screwed me here as well! I wish he would sod off and stop fiddiling with things he doesn't understand.

Masomnia

MiserlyMartin wrote: »

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

http://www.moneysupermarket.com/savings/

Plenty of inflation beating accounts on there.

When Egg offered the 6.3% fixed for a year account it was all over the press that interest rates would fall, so many here opened one as insurance against that. It's not hard with a bit of forward planning.

Masomnia

tuggy12 wrote: »

But you're in debt, so you won't be losing a few quid.

I have savings too, only some of which are mentioned in my sig.

MiserlyMartin

Masomnia wrote: »

http://www.moneysupermarket.com/savings/

Plenty of inflation beating accounts on there.

When Egg offered the 6.3% fixed for a year account it was all over the press that interest rates would fall, so many here opened one as insurance against that. It's not hard with a bit of forward planning.

Aside from one year fixed rate special deals, which will disappear faster now rates have been cut again, most normal instant access accounts are paying less than inflation 2.5-3% before this cut. And besides the fixed rates only help for a year, what are people supposed to do when they run out>?

Some people could not take advantage of the last fixed rates accounts such as Egg because they were in previous fixed deals which will run out after the 'good deals' have gone. There are practicalities that you don't seem to have thought about.

Masomnia

MiserlyMartin wrote: »

Aside from one year fixed rate special deals, which will disappear faster now rates have been cut again, most normal instant access accounts are paying less than inflation 2.5-3% before this cut. And besides the fixed rates only help for a year, what are people supposed to do when they run out>?

Some people could not take advantage of the last fixed rates accounts such as Egg because they were in previous fixed deals which will run out after the 'good deals' have gone. There are practicalities that you don't seem to have thought about.

The top rates are still higher, and yeah moving it is a pain, but if you want a real return from a savings account you should expect to have to do a bit of work for it in my opinion. yeah rates have just been cut, but inflation is set to fall further anyway. As for a year's time, I don't have a crystal ball. A year ago we had instant access at 6.55%, so who can say what will be available a year from now? Depends on how deep the recession is... interestingly enough it'll be less deep if interest rates are cut.

As for the egg account, it could be opened with £1, with no restriction on withdrawals or deposits. Like I say, if you do the research now and again you can get good deals.

LongTermLurker

tuggy12 wrote: »

We're all dying to know.

Not a problem - anyone who reads my posts knows I'm not going to make it up.

I'm earning an average of 7.6% gross/AER on all my savings how/where?

I have a "portfolio" of savings accounts. There are FTDs paying at or around 7%, no notice fixed between 6% and 6.5% and Regular Savers at around 8%, 10% and 12%. Then there's my offset mortgage, which is effectively a tax-free gain. The info was always on this forum, hense my sig. I have little in the way of variable rate interest accounts but easy access to a big chunk of my money. Existing and new cash is all taken care of.

and have secure at least 6% instant access until next November.where?

Egg is paying me 6.3% and Halifax GSR pays 6%. I opened them just around the time of the 0.5% and 1.5% cuts because it was clear as day that rates were gonna fall - Yorkshire Boy had been telling everyone for months what a great idea the Egg account was. Also some of the RS accounts allow emergency withdrawals, subject to an interest penalty.

the 6%, 7%, 8%, 10% and 12% when/where?

Most of this year? Barclays had a 7.75% RS, Halifax 10% (if you locked away £5k you could have had 12% on it), A&L had 12%, I think Abbey had 8% or 15% if you took out an investment product - there were loads at these high rates.

LongTermLurker

MiserlyMartin wrote: »

I think there are a lot of people who refused to buy into the housing pyramid selling scam that it was and put the money in the bank for later on. There are a lot of wise people on this forum many of which sold their houses because they foresaw this crash - despite the majority of popular opinion that houses would never crash and they were mad. Thats why there is a lot of money sitting in peoples accounts. And thats why people are annoyed. The prudent bail out the irresponsible who were encouraged by the most irresponsible man of all - Gordon Brown.

I didn't think it was a selling scam. I wanted to move, I sold my house, bought a new one and moved in. I think you're talking about people who invested in houses, maybe for rental income. They were wise to get out of the market when/if they did, but they would have been wise to spread the proceeds around several top paying accounts that guaranteed the interest rate, surely? Surely someone who sold a £150k house didn't put the money into variable rate accounts when the rates were so good?

I couldn't sell my current house, I live in it.

LongTermLurker

MiserlyMartin wrote: »

Some people could not take advantage of the last fixed rates accounts such as Egg because they were in previous fixed deals which will run out after the 'good deals' have gone. There are practicalities that you don't seem to have thought about.

Again, I remember some excellent recommendations on here for the KE FTD, the main one being to take out one every month so you always had money available. Forgetting about the highlighted provider, spreading and staggering your money seems to have been the best bet.

I also remember people saying "I have just sold a £300k house(s) - I'm not messing about splitting it between banks - after all, they'll never fail will they?" :rolleyes: - How foolish were they?

MABLE

I fully blame the idiots who have bought now and cant pay later. I have not got into debt and have looked after money. However if you are in debt or bankrupt you get well looked after and we savers have to get the best deal we can. Bl...y scandoulous.

MiserlyMartin

I spend a lot of time on here keeping an eye on the latest deals and spend a lot of time - more than most, on trying to make my finances work as hard as they can. I was referring earlier to those who have sold to rent to avoid the property crash.

Coventry BS 'Privilege' ISA is now paying a whopping 3%. What a privilege!