Where do us savers go now then?

dean_ham

Where do us savers who havent spent beyond our means and saved over the past few years go now? Cant belive how low the interest rate has dropped over the last few months its just madness!

Lorian

This is, I guess, the great quest for 2009.

Even those with fixed rate deals are going to be cosidering what comes after....

JimLad

I have no idea! I have switched savings account so often in the past year that im sick of it now.

Fella

Shopping.


Well that's what they're trying to force you to do anyway....

latecomer

I'm tempted to withdraw all my money and put it under the mattress. At least that way the banks dont get the benefit of it....

wombat42_2

At least you are not losing money as you would do with shares. Zero percent interest is OK in a deflationary environment. Its if inflation picks up that you might have a problem.

Lokolo

wombat42 wrote: »

At least you are not losing money as you would do with shares. Zero percent interest is OK in a deflationary environment. Its if inflation picks up that you might have a problem.

Don't forget inflation last month was still 4%. It will be ok in 6 months if inflation starts being very low or negative.

Ken68

I am going to compensate for the loss of interest by packing up smoking and drinking and whoring, that'll learn 'em. :-)))))

nicko33

you could go to ING for 5%

or various Regular Savers at 6%
and the Abbey Super Fixed Rate Monthly Saver (Issue 5) at 7%
(as long as that's not the one where you have to put the same into an investment product)

Fella

wombat42 wrote: »

At least you are not losing money as you would do with shares. Zero percent interest is OK in a deflationary environment. Its if inflation picks up that you might have a problem.

Only trouble is we aren't in a deflationary environment are we? Nothing like it.

Just this week for example, rail fares shot up for the umpteenth year running - over 10% for us. And all those other things that don't get on the news - for example car parking at our local station (which is unavoidable, nowhere else to park) just went up from a cool £5.30 a day to £6.00 day for 2009. A nice little 13% increase.

Worst of both worlds I'm afraid. Huge inflation & zero % interest on savings.

nicko33

Lokolo wrote: »

Don't forget inflation last month was still 4%.

change in RPI (reported) last month (for the previous month) was negative
as was the month before

it was 4.2% from Oct-2007 to Oct-2008 (as reported in Nov)

edit:
if we use the same language as for house prices, then inflation has "fallen off a cliff"