Savers Should Stand Up And Be Counted

juicyjude

Evanasus, if things had continued along those lines then I dont think we would be in the mess we are in now

Andrew64

This article tells everyone what us savers already know!

Interest rate cut 'will starve banks of cash', as savers are deterred

http://www.timesonline.co.uk/tol/money/savings/article5478204.ece

"The lowest interest rate in the history of the Bank of England will deter savers from depositing money and further undermine troubled banks, it was claimed yesterday."

ChuckCash

Aside from the low interest lates, there is still an unreasonable gap between the saving and lending rates (all banks are guilty of this)... that suggests to me that the banks' main priority is still to make profits, rather than securing deposits.

It would be an interesting experiment if just one of the banks offered an industry topping (e.g. >5%) interest rate on a variable rate savings account, to see if there is a mass exodus towards that bank. If so, maybe that would pursuade the remaining banks to reconsider their priorities.

I'm thinking of removing my savings and investing in matress manufacturers. I predict there will be a lot of money in mattresses soon enough.

LesU

Andrew64 wrote: »

This article tells everyone what us savers already know!
Interest rate cut 'will starve banks of cash', as savers are deterred

http://www.timesonline.co.uk/tol/money/savings/article5478204.ece

"The lowest interest rate in the history of the Bank of England will deter savers from depositing money and further undermine troubled banks, it was claimed yesterday."

Talk about stating the bleeding obvious! What next? Losing your job has a big impact on income?
Who are these 'experts' that keep getting dragged up to tell us these things?
The same ones, I suppose, that keep telling us we are about to get deflation. I know, I read about in The Times ( up 11% in cost from last Monday).

Calchas

LesU wrote: »

The Times ( up 11% in cost from last Monday).

I missed that! :eek:

Good old Rupert!

parcival

The problem is that the country is run by so called 'experts'. In reality all they want to do is look after themselves and their cronnies.

We need someone to come forward with an ounce of common sense.

gozomark

UK has had deflation for a couple of months now - CPI index (not the change, but the index itself) fell in Oct and Nov

oldandgrumpy

Hey all you old savers who were refused benefits because your income from savings was too high. Go round the bouy again.....and challenge the governments supposition that savings over £22500 are considered to reap a reward of 5%! WHERE????

baby_boomer

I thought the government assumed you were getting 10% on your savings :eek:

This December 2008 article seems to confirm it

"'The formula is not intended to represent any rate of return that could be obtained from investing capital,' says a spokesman for the Department for Work and Pensions."

You can say that again!

Savers are likely to make their voice heard at the next election.

alared

Unless the interest paid after tax is higher than the inflation rate then your money is losing value and deminishing.