When will interest rates go up again?

penguine

chucky wrote: »

maybe not sensible - but it seems that you're looking at it from just your 'savers' angle which at the moment doesn't look the best investment vehicle.

if you're a saver did you complain that rates were higher?
or are you complaining now because it may not suit your personal choice.

IIRC there are far more savers in the UK than people with a mortgage. And the banks need funds. So it doesn't logically make sense to penalise savers.

We've got both a mortgage and savings, and what we're losing in interest now is probably balanced out by what we're saving on the mortgage payments, so I don't have a particular vested interest one way or the other.

Dan:_4

penguine wrote: »

We've got both a mortgage and savings, and what we're losing in interest now is probably balanced out by what we're saving on the mortgage payments, so I don't have a particular vested interest one way or the other.

So whats the problem???

penguine

Dan: wrote: »

So whats the problem???

No problem, I just think that really low interest rates are such a historical aberration that they can't be sustainable.

Thrugelmir

Dan: wrote: »

I know, it winds me up as well. Most people's debts are fixed loans and credit cards so interest rates will not mean nothing.

A number of credit card companies now charge 30% plus interest rates having recently raised them 8%. So low interest rates are of no benefit to these cardholders.

Really2

penguine wrote: »

No problem, I just think that really low interest rates are such a historical aberration that they can't be sustainable.

Check out, Japan, The US, and europe we are all in the doo doo. As long as the cost of living is lower than IR (which they will be very soon) savers are net winners.

You seem to have a fixation on the £'s coming in rarther than the £'s going out.

A bank looks after your money first of all, interest is a bonus. In times of a global downturn is losing £X in interest that bad consdering what is happening.
Their are higher rewards that carry higher risks and every saver as a choice to that path but not high rewards and low risk.

Wookster

Here is a graph of interest rates in Japan, might be interesting to take a view if you think there is a similarity with Japan's 'lost decade'

chucky

penguine wrote: »

No problem, I just think that really low interest rates are such a historical aberration that they can't be sustainable.

current interest rates are an attempt to kick-start the economy as part of their "bigger plan" to fix the economic situation; ie QE, VAT cut etc... and i'm not in a position to say that these are good or bad - my caveat

this is what i'm trying to get at when i said you're looking at it exclusively from the savers angle - there is much more to it.

unfortunately some people will be hit by this and will have to change their investment strategy or lose out - ie savers...

Thrugelmir

Really2 wrote: »

Check out, Japan, The US, and europe we are all in the doo doo. As long as the cost of living is lower than IR (which they will be very soon) savers are net winners.

You seem to have a fixation on the £'s coming in rarther than the £'s going out.

A bank looks after you money first of all, interest is a bonus. In times of a global downturn is loosing £X in interest that bad consdering what is happening.
Their are higher rewards that carry higher risks and every saver as a choice to that path but not high rewards and low risk.

The banks in Japan had (and still have) different issues to the ones faced by the UK retail banks today. In that they held equity stakes in the very Companies that had lent money to. As the stock market fell so did the collateral held to secure the debt.

Adebisi

Thrugelmir wrote: »

Maybe you're overlooking the fact that Gordon has lost the "capital" value of your investment, which would take years to recover in terms of interest savings.

But I got a 5x my wage 100% mortgage, so the money I save is building up plus I have managed to get 11 credit cards over the last few weeks. Add the over draft and a 15k loan I have just been approved for to the credit card limits and savings and after I have taken this all out stuck it under my bed and gone bankrupt. I will have lost 2k that I have paid off my house and the 500 quid I have lost for the bankrupt fee I will have around 80k to buy a bigger cheaper place outright with cash. Gordon has set me up in a win win situation.

Thrugelmir

Adebisi wrote: »

But I got a 5x my wage 100% mortgage, so the money I save is building up plus I have managed to get 11 credit cards over the last few weeks. Add the over draft and a 15k loan I have just been approved for to the credit card limits and savings and after I have taken this all out stuck it under my bed and gone bankrupt. I will have lost 2k that I have paid off my house and the 500 quid I have lost for the bankrupt fee I will have around 80k to buy a bigger cheaper place outright with cash. Gordon has set me up in a win win situation.

Well you're an exception!

Remember your creditors don't have to accept formal bankruptcy...... you can be left hanging.