Where do I go now? My saving plan is ruined.

Old_Slaphead

Bottom line is that many mortgage holders, buy-to-letters etc will be significantly better off (my friend - a teacher on £40,000 with secure job,pension etc will benefit by £250pm) at the expense of those who've tried to act responsibly and make some provision for old age or misfortune so as not to be reliant on the state.

To help those recently introduced to negative equity - the Gov't could have introduced MIRAS for 1st time buyers for 1st 5 years. Special targeted measures could be introduced to help SMEs who are currently struggling through lack of demand and the horrendous increases in fuels charges that are likely to continue throughout most 2009, due, in part to this Gov't lack of foresight in ensuring adequate & timely investment by this industry.

lesley1960

Surely unless you have huge amounts to save , its really not going to make a great of difference is it?

housesitter

Aegis wrote: »

You are not being persecuted.

So you don't at all feel that savers are being encouraged/cajoled/coralled toward spending and giving up saving in the face of pathetic returns and "bargins" on the high street.

Or did I miss part of the point of the exercise?

Old_Slaphead

lesley1960 wrote: »

Surely unless you have huge amounts to save , its really not going to make a great of difference is it?

No but, having worked for 40 years, a say £50,000 nestegg to cushion retirement is not unheard of. The interest rate falls of the last few weeks will hit someone with that level of saving by over £30 per week

Uncertain

On a financial forum such as this, would it not be best to concentrate on how to make the best of what is out there rather than trying to put the world to rights and seeking political utopia?

Just a thought !

tradetime

housesitter wrote: »

So you don't at all feel that savers are being encouraged/cajoled/coralled toward spending and giving up saving in the face of pathetic returns and "bargins" on the high street.

To a greater or lesser degree I'd agree with all those, but would suggest that it does not amount to persecution. What savers are experiencing is simply a symptom of the whole mess the world finds itself in, banks have always and will always pay significantly less interest than they can lend at. It's unfortunate for those of us with savings but it is a fact of life. Personally I think when interest rates start to rise savers will be in worse shape because it will be in the face of significant and sustained inflation

housesitter

OK, I hear waht you are saying but I disagree.
We have been taken down a rather odd route in this recession. Wiping out interest rates is not the sensible thing to do and seems to be born out of a misguided idea that the housing market needs to be pumped back up again.

Savers have money which then could inject into the system and we are actively being encouraged to spend it, whilst those who have acted foolishly are being essentially rewarded for their actions.

It is in fact savers who are being made to look foolish in this light and if govt would have it, almost greedy for not contributing to the economy.

If/when interest rates hit negative figures (can that even happen?) would you then say it's persecution?


So long as interest rates are ahead of inflation (or close enough to it) then I'd welcome it over the current situation, which is only postponing the inevitable till after the xmas sales bonanza has passed. Once people are out of the silly season will they start to wake up and realise they've just been had over a barrel for their excessive xmas spending.


I've missed the really good fixed deals too due to where my savings were and not being able to get them out in time. There are however still some good deals flaoting around and I should be able to fix soon enough.
But I stil wonder if cash is a good idea.
Problem with uncharted territory is being unable to predict which iceberg the incompetants at the helm are going to steer us into next.

Mikeyorks

theAnarchist wrote: »

What the fcuk are the government doing to help us Savers???

How do you think you got your money back from Kaupthing. The Icelandic fairies?

Morn

Mikeyorks wrote: »

How do you think you got your money back from Kaupthing. The Icelandic fairies?

:rotfl::rotfl:

Old_Slaphead

Mikeyorks wrote: »

How do you think you got your money back from Kaupthing. The Icelandic fairies?

Ahh, let's look after those idiots who had £50,000+ of unguaranteed investment with dodgy foreign banks but stick 2 fingers to those who had their small pensions invested with the same failing pension company as the MPs (before they extracated themselves on favourable terms).

What is it about this Government and fairness?