Anyone withdrawing savings due to 1% base rate?

save-a-lot

gozomark wrote: »

except prices have been falling for the last 4 months....

I have not been fast to move to doing this, but I suppose yesterday was a catalyst to start to make some changes for my situation

unitedwestand

jamtart6 wrote: »

All current savings (except for rainy/redundancy day pot!) will be going into house renovation at the moment, but if we're still in the same situation next year with base rates, savings will be going towards mortgage

Good move on the mortgage :beer:

Unless its vital I wouldn’t be carrying out unnecessary house renovation work though, as there’s a good chance the completed work will just depreciate along with the value of your house, then again if you get it at a very competitive price due to the recession and its adds genuine value…. bit of a gamble.

Im in a good position as my mortgage is now paid.

Two things I've always considered as a false economy is sitting on savings when you still owe money at a higher rate.

Getting into excess debt to live unnecessarily out with your means.

My house isn’t big & it’s not over inflated by location. I half expected the market bust so didnt invest more in property, instead I just saved.

I took Martins advice and stuck my savings in fixed rate high interest accounts that ends not long after the next BOE interest rate announcement in March.

For me you can’t get much more of a rainy day than a global recession, suppose if things get that bad you could maybe look in to mortgage repayment breaks, borrowing back against your mortgage, downsizing, trimming costs elsewhere or selling your mother.

In my opinion, paying mortgage rates of around 6% and getting next to no return on your savings account, you’d be better off giving your money away to charity than over lining the greedy bankers suit pockets.

Andrew64

I finished paying off my mortgage last year and I've no other debts to speak of. I'm going to carrying on saving for my future retirement and I'm not going to spend just because Brown and Darling want me to. Although I'm not likely to get any extra interest, I am planning to take all my money out of my bank accounts and putting it in BS accounts instead (I have a Nationwide account already, have to find a few others!). Why give it to these failed bankers to pay for their bonuses!?

bristolleedsfan

gozomark wrote: »

except prices have been falling for the last 4 months....

Thats cold comfort.

http://www.express.co.uk/posts/view/73823/Food-prices-soar-as-pound-plunges

http://www.theherald.co.uk/news/other/display.var.2487052.0.Prices_in_Scots_shops_rise_due_to_festive_discounts_and_weak_pound.php

http://business.scotsman.com/retail/Shoppers-face-a-return-to.4948432.jp

http://www.bloomberg.com/apps/news?pid=20601103&sid=aGZGviRlYemQ&refer=us

http://www.bjp-online.com/public/showPage.html?page=837753

http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=e73879a2-bcbe-497e-8ad4-d5d22894f12c

http://www.yorkshirepost.co.uk/businessnews/Weak-pound-impacts-on-Hornby.4919791.jp

http://www.flickr.com/groups/manchesteruk/discuss/72157613289139731/

http://www.thisisbristol.co.uk/news/Council-tax-rise-3-5/article-671729-detail/article.html

http://www.thisisbristol.co.uk/news/Bristol-set-3-5-rise-council-tax/article-664978-detail/article.html + Extra for Police. :mad:

Pssst

to the OP,you read my mind. I have been pulling out smaller sums of money for a while but now I shall be pulling larger sums and stuffing it in my rather large safe.

I am NOT baling out banks and those in debt.

I cannot believe how this whole scenario is playing out.

Get yourself into debt,buy a big house ,live life to the full,get into debt...fine no problem. we will shaft savers by taking their money,giving them nothing,using it to prop up failing banks and oh by the way,we will also lend it out to wastrels at 8 or 9 % apr and more so that WE can make profit also.

Saving? mugs game.

Do you think this couls prompt a bit of a run on the banks? I.e savvy savers saying we've had enough? doubt it.most of us are too stupid to do it and theres too much inertia.

apt

Ok, so having missed plenty of chances to fix your savings at 6% or better you're so angry at the prospect of 2% that you want to stick your money under a mattress where you'll get 0% and it won't be insured if it's lost. That's hardly the thinking of an Einstein is it? Makes far more sense to move the money to the few remaining decent accounts and for savers to make it clear to politicians that they are going to lose millions of votes if they keep pressing for near zero rates when the economic problem is the availability of loans not their cost.

tradetime

unitedwestand wrote: »

The Daily Mail: “Financial experts said savers have become the 'sacrificial lambs' of the Bank of England's attempts to rescue the economy.”
http://www.dailymail.co.uk/news/article-1136362/Savers-ZERO-base-rate-slashed-new-record-low.html

Wales Online: “Rate cut 'an assault' on savers”
http://www.walesonline.co.uk/news/wales-news/2009/02/05/rate-cut-an-assault-on-savers-91466-22863659/

The Press Association: “Savers set to suffer further blow”
http://www.google.com/hostednews/ukpress/article/ALeqM5j10oNcqAeOMXeDl9RK8NuKu8OGyg

The Telegraph: ‘Don't cut interest rates’
http://www.telegraph.co.uk/finance/personalfinance/savings/4444586/Dont-cut-interest-rates-building-societies-tell-Bank-of-England.html

The Herald: 'Under the mattress’ mentality returns’
http://www.theherald.co.uk/news/other/display.var.2487311.0.Under_the_mattress_mentality_returns.php

The Herald: 'Savers have been thrown to the wind’
http://www.theherald.co.uk/news/other/display.var.2487312.0.Savers_have_been_thrown_to_the_wind.php

Daily Express: “savings drop by more than 80 per cent in the past two years”
http://www.express.co.uk/posts/view/83534/Despair-for-savers-as-interest-rate-is-cut-to-1-

Evening Standard: “Savers are inevitably angry and frustrated as they feel they are being penalised for prudence.”
http://www.thisismoney.co.uk/news/article.html?in_article_id=473210&in_page_id=2

Money Week: “Why the Bank of England's latest rate cut is a big mistake.”
http://www.moneyweek.com/news-and-charts/economics/why-cutting-interest-rates-now-would-be-a-mistake-14605.aspx

Times Online: “savers, who vastly outnumber homeowners, will suffer a further heavy blow to their fast-dwindling returns.”
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5672075.ece

Times Online “puts more pressure on the finances of savers, who have already been subjected to a vicious squeeze.”
http://business.timesonline.co.uk/tol/business/columnists/article5672080.ece

Reuters: “banks benefiting from the Bank of England's latest interest rate cut should think of ways to help savers”
http://www.forbes.com/feeds/afx/2009/02/05/afx6014041.html

EDP24: “Interest rate cut sparks savings outcry”
http://new.edp24.co.uk/content/news/story.aspx?brand=EDPOnline&category=News&tBrand=EDPOnline&tCategory=News&itemid=NOED05 Feb 2009 19:49:45:430

I see the popular press has found a new audience to play too, yawn.

gozomark

bristolleedsfan wrote: »

Thats cold comfort.

£ is strongest major currency in the world so far in 2009 - trade weighted basis is up 8.4%

tradetime

bristolleedsfan wrote: »

Thats cold comfort.

http://www.express.co.uk/posts/view/73823/Food-prices-soar-as-pound-plunges

http://www.theherald.co.uk/news/other/display.var.2487052.0.Prices_in_Scots_shops_rise_due_to_festive_discounts_and_weak_pound.php

http://business.scotsman.com/retail/Shoppers-face-a-return-to.4948432.jp

http://www.bloomberg.com/apps/news?pid=20601103&sid=aGZGviRlYemQ&refer=us

http://www.bjp-online.com/public/showPage.html?page=837753

http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=e73879a2-bcbe-497e-8ad4-d5d22894f12c

http://www.yorkshirepost.co.uk/businessnews/Weak-pound-impacts-on-Hornby.4919791.jp

http://www.flickr.com/groups/manchesteruk/discuss/72157613289139731/

http://www.thisisbristol.co.uk/news/Council-tax-rise-3-5/article-671729-detail/article.html

http://www.thisisbristol.co.uk/news/Bristol-set-3-5-rise-council-tax/article-664978-detail/article.html + Extra for Police. :mad:

These are a bit more concerning, Sterlings slide will likely do more harm than good.

tradetime

gozomark wrote: »

£ is strongest major currency in the world so far in 2009 - trade weighted basis is up 10%

Not disagreeing with that mate, but do you have a source, preferably with an explanation as I'm having a little trouble getting my head round that statistic.