This government is laughing at saver!

Gray_colt

Says it all really doesnt it, i know its been said before but there is little point in saving now with rates so low. Scrounging around for accounts paying less that 3% after tax, TAX to pay for all them idiots that said i can pay 125% mortgage off!! plus u have to lock it up for a period isnt my idea of RESPONSIBILITY. Obama said its time for us to start acting responsible but i see very little in the uk population. Only the good die young, only evil seems to live forever. Dont save. Get into debt, them this government will look after u. What a ******* joke!

dunstonh

There is a lot of truth in what you say but savers rarely get much more than inflation historically. With RPI as low as it is, savers are generally getting what they always get in real terms.

Savers are no worse off than a year ago when the rates were 5-6%. Only those using savings for income are worse off but there are alternatives to that which pay more so its not really an issue.

ukmike

Only those using savings for income are worse off but there are alternatives to that which pay more

Care to name?

Gray_colt

Savers are no worse off than a year ago when the rates were 5-6%. I take issue with this???

Mike1989

Well if you are saving money for a rainy day, to pay for a mortgage deposit etc, then whether you get 3% interest or 6% interest doesn't really matter. Admitted if you save 250 a month in barclays 6% you get roughly £96 interest, so if its now 3% you'll get half that amount. But at the end of the day you have still saved £3000 towards whatever you want. So saying don't save is quite silly really. As if you save you might not get brilliant interest rates, but you will always have some money to fall back on when you need it.

And the reason governments seem to help those in debt more than those who save, in my opinion, is because they have nothing to fall back on. Whilst savers have their savings to fall back on. A key difference, in general, between a saver and a person who gets in that much debt.

dunstonh

ukmike wrote: »

Care to name?

Annuities and other various investment products.

Savers are no worse off than a year ago when the rates were 5-6%. I take issue with this???

Ok, fire away. However, before you start you need to note that inflation is effectively around 1% now and savings rates are about 1% more than that. A year ago, inflation was around 5-6% and savings rates were around 1% more than that. So, the effect net of inflation is that you are no worse off.

Anyone relying on all the interest on their savings for providing income has always lost money in real terms and that is no different except for the fact they are now going to have erode their capital or lower their spending habits if they insist on sticking with savings.

Gray_colt

Last time i checked my personal inflation (not general) ie ipods, n leather sofas but food n fuel it didnt come to 1% I was responsible to save up and bought my house outright and didnt and dont rely on income from savings and never have done. No body takes responibility for there actions these days, they whack up massive debts on there credit cards and lie about how much there earning to get that house they (want now) Instead of buying what they can afford. obama said its time we started acting responsible!

Stavros_3

Gray_colt wrote: »

Savers are no worse off than a year ago when the rates were 5-6%. I take issue with this???

So do I
I ask merely because the monthly interest on my savings account with the B & B have dropped by 65%. Please don't insult me and tthousands of other savers who rely on monthly interest to bolster income and pensions.

RayWolfe

Don't think you will succeed here D, there seems to be other agendas operating here.

tom188

Indeed, classic examples of mental accounting

What would people prefer - a savings account paying 6% and inflation at say 3.9% or a savings account paying 2% and no inflation?

The real return on capital in each case is identical.

Lokolo

^^ as above. So pretty much its the individual to blame for buying very inflatable products....

I'm sure my personal inflation is quite low considering I rarely buy anything other than food and pay for rent (which is staying at the same rate for the next 2 years)

Obviously I was p***ed at the fact RPI was so higher... but now its 0.9% I'm rather happy.