Savers you've never had it so good?

cheerfulcat

And what happens when ten years later you have £50,000 left and inflation takes off in a big way?

Reaper

Either way you would face the future with the same amount of money in real terms.

Paul_Herring

MSE_Martin wrote: »

Shock news for SAVERS.
With inflation at 0.1% you’ve never had it so GOOD!

[...]

NOTE! THIS IS MY FIRST DRAFT IT WILL BE GOING IN THE WEEKLY EMAIL LATER. ITS A THOUGHT PIECE AND I WOULD BE VERY INTERESTED TO READ FEEDBACK OR HEAR AMENDMENTS.

With a deliberately misleading headline, potentially misleading calculations, and a nearly hidden reference to the the PIC website, where some of the people affected/this is targeted at may find their own rate of inflation
<hyperbole="my own"> will be 5,000% higher than the one in your example</hyperbole>
(e.g. pensioners on 5% inflation vs 0.1% CPI) I think you'd be better off steering clear of this angle on savings.

mike22

Paul_Herring wrote: »

With a deliberately misleading headline, potentially misleading calculations, and a nearly hidden reference to the the PIC website, where some of the people affected/this is targeted at may find their own rate of inflation
<hyperbole="my own"> will be 5,000% higher than the one in your example</hyperbole>
(e.g. pensioners on 5% inflation vs 0.1% CPI) I think you'd be better off steering clear of this angle on savings.

Shall I save in Fixed Bond for 1 year or not?

gozomark

mike22 wrote: »

Shall I save in Fixed Bond for 1 year or not?

assuming you mean should I, and not shall I , then as long as you can afford to lock up the money for a year, than I say yes

KingL

mike22 wrote: »

Shall I save in Fixed Bond for 1 year or not?

There was a view given in post 16.

It depends on what you think interest rates will do, but IMO, it's not a bad idea. You could also consider putting £3600 of it in a fixed rate ISA, at a similar or slightly lower rate.

This is all a bit off-topic for this thread - you might be better off joining one of the "what should I do with £x,000" threads

kingmonkey

People need to start thinking more of the long term.

In the long term cash deposits barely beats inflation.

If you want higher returns you need to take on some short term risk.

Liz_the_Whizz

MSE_Martin wrote: »

Shock news for SAVERS.

With inflation at 0.1% you’ve never had it so GOOD!

It's certainly a thought provoking piece, but the title is glib and offputting.

Could it not say "If inflation really is at 0.1%........"?

As previous posts have shown, convincing people that they are no worse off by spending their capital will be an uphill task. Maybe a few examples would help.

wearside_2

I wonder what the RPI figure will be in September when Pensions and Benefit increases are calculated for April 2010. Will it be down to below 0% meaning deflation and if so, will the rates be frozen or worse still be reduced? I can see many problems arising as we have not been in this situation before.

gozomark

Sept ? around -2%