Anyone withdrawing savings due to 1% base rate?

Pssst

tradetime wrote: »

There's a lot of "Stamp my feet, and scream and shout!" on these savings interest threads.
I'm taking my money out "because I'm not bailing out the banks."
If there was no capital in the banks because everybody took it out and the government wants to prop them up then they will do it with taxpayer money, or they will print what they need to do it, thus devaluing the money under your mattress.

Screaming shouting and stamping feet usually just leaves you with a sore throat and sore feet.

But if you act instead of shouting,you feel a warm glow of satisfaction that you have won a small victory albeit a Pyhrric one

Pssst

poppysarah wrote: »

I'm reluctant to take cash out of the bank or encourage others to do so - but I am looking at where it is in the banking system and am about to go and trawl some building society sites to see which of them is going to have the pleasure of my cash.

I would like to see a protest by savers though - a national campaign - maybe where we go and open accounts en masse at a certain bank and tell the world why we're moving our cash.

I'm reluctant also but the truth is,your money isnt safe in the banks any more.

Its better where you can see it and feel it.

Even if it does decline a little in value,at least you will have possession of it and they wont.

gozomark

Pssst wrote: »

But if you act instead of shouting,you feel a warm glow of satisfaction that you have won a small victory albeit a Pyhrric one

pyhrric victory would imply you lost all your savings as a result of keeping them at home... hopefully not what you mean:rotfl:

bristolleedsfan

apt wrote: »

Ok, so having missed plenty of chances to fix your savings at 6% or better /quote]

Thats not actually fair because a lot of us did fix at 7% in the third quarter of 2007 until March ish 2009, its just that not everybody wants to fix for life with a monthly income. Whats gawling for a lot of us is that Base Rates are being slashed on the basis of "we will try this if it dont work we will have to try something else", as most people have said its the availability of credit that is the problem not the cost of credit so savers are being hurt with no apparent gain to "many" in the country.

Reaper

This is not the only thread where people have declared we should take our money out of the banks, but there of precious few suggestions of where better to put it.

I only heard 2 sensible suggestions - one to pay off a chunk of mortgage (if you have one and the terms allow it). The other is to invest it.

Investing it has many advantages. There are companies out there finding it tough to borrow money from the banks any more. By investing in them through shares or corporate bonds you are actually helping the economy as well as helping yourselves.

The downside is it takes more thought than simply sticking it in a savings account paying the highest interest (but that's no excuse), and you have to be prepared to accept risk.

One more suggestion which nobody has mentioned - buy a property. Perhaps a bit soon as I think they still have further to fall but ultimately there is still a housing shortage in the south which isn't going to go away, and interest rates are nice and low. If the predicted high inflation comes then any mortgage debt you have will shrink.

Maybe you think my suggestions carry risk but so do the others - sticking it all in a safe means it shrinks with inflation, putting it in a savings account abroad means its value fluctuates with currency movements (and getting compensation if the bank goes under my be difficult).

poppysarah

Reaper wrote: »

I only heard 2 sensible suggestions - one to pay off a chunk of mortgage (if you have one and the terms allow it). The other is to invest it.

One more suggestion which nobody has mentioned - buy a property. .

For those without a mortgage - the option is to invest either in shares/gold/baked beans/property.
But property is very illiquid as people are finding out. If you need your money - if you have "saved for a rainy day" - you don't want to be tieing it up - you need easy access to it - and perhaps to start spending it earlier than we intended.

The problem is for people who've recently retired - their savings have to last until they're dead (Or they reach the limits for benefits - but there are rules on how quick you can spend your own cash without it being deprivation) and people have to estimate that they might live another 30 years. To be told now they're getting nowt on their savings as income and have to start spending it now must be terrifying.

What was the point of going without when you can see the spenders having their luxurious lifestyle paid for by hard working taxpayers?

Asheron

Put it into Gold and Silver

tradetime

Pssst wrote: »

But if you act instead of shouting,you feel a warm glow of satisfaction that you have won a small victory albeit a Pyhrric one

In your head perhaps, and like gozomark, I'm not sure you want to be applying the exploits of Pyrrhus to this. By all means act, just act sensible.

soulsaver

kittie wrote: »

I am very annoyed and frustrated and can`t wait for the general election

Yes but where are the alternative govt shouting they'd do more for savers?
Interestingly the first person of substance in the media to formally state 'what about doing summat for savers' was John Varley (head of Barclays) And was poo pooed by Mendleson on C4 news...!

Liloly

Does anyone know what has been happening in the USA where they have had 1% base rate for a spell a few years ago and more recently where they of course are now down to "near zero"? I would be interested to know what kind of rate is offered there on personal savings deposits.
I have tried to find something on the web but without much success.

I would imagine their savings structure is different to ours if they do not have the equivalent of buliding soceities and rely more on corporate banks for private house purchase.

I did hear something along the lines that savers had been compensated with some form of cash payment in one of the early stimulus packages.