New Bank Rate Today ?

nilrem_2

Stavros wrote: »

Alistair Darling on being asked this afternoon, about the savers being hit hard with next to no interest on their savings, hinted heavily that there will be something in the April budget. I'll have 50p each way that he will abolish tax on savings for basic rate payers

Even if he does it won't make a great deal of difference to many savers, with interest rates so low the 20% one has to pay will not amount to much of a saving if abolished.

jimbow25

bagsacash wrote: »

Tesco were quick to pass on their rate cut from 2.5% to 1.75%

In fact that was confirmed before today's cut - see this thread. So I imagine there could be another fall in store.

To be fair to the banks, they seem to cut mortgage rates pretty quickly and then move savings rates within a few weeks/a month, and it was the same situation when rates were on their way up (back then everyone accused the banks of dragging their heels when they should be passing on rate rises quicker, of course). There may be the odd exception but they seem to be consistent, whichever way rates are going, at least.

noh

bagsacash wrote: »

Tesco were quick to pass on their rate cut from 2.5% to 1.75%

That was due to previous months cuts. They have not yet reacted to todays cut in base rates.

Nigel

ian-d

nilrem wrote: »

Even if he does it won't make a great deal of difference to many savers, with interest rates so low the 20% one has to pay will not amount to much of a saving if abolished.

Exactly, "here, have 20% tax off.....ermmmm....nothing!"

I think this £75m print is a joke too, they'll inject cash into the banks but cannot force them to lend with it, so banks will just hold the money to improve their balance!

The media hasn't helped one bit either, but then they are always everyone's worst enemy!

nrsql

It might make it profitable to put mortgage money into a savings account though.

melbury

nilrem wrote: »

Even if he does it won't make a great deal of difference to many savers, with interest rates so low the 20% one has to pay will not amount to much of a saving if abolished.

It'll probably be for over 65's or something like that, if it is possible to adminster that sort of scheme.

What makes me sick are all these people that are HUNDREDS of pounds a month better off because their mortgages have dropped by so much and they are still working and earning a wage as well.

So they are laughing all the way to the bank, or probably not because it's not worth saving all that extra money in a bank is it:rolleyes:

ed123_2

....following todays announcement re quantative easing/printing money will impact on savers as well as the cut to 0.5%....
..It's differcult to follow the logic of this.....they wish to encourage banks to lend, so they drop the rates for savers who then withdraw/spend their money thus reducing the amount the banks have to lend?.....Also part of the reason we are in this mess is that people have over spent and got into debt...so their solution is to encorage people to spend more and get into more debt???:mad:

Stavros_3

nilrem wrote: »

Even if he does it won't make a great deal of difference to many savers, with interest rates so low the 20% one has to pay will not amount to much of a saving if abolished.

Exactly.

davidmckay

OK, I'm going to shove in my tuppence worth (not literally of course....that would be wasteful:rolleyes:).

I locked my ISA rate at 5.75 for 2 years back in November, and moved the rest of my savings to a fixed bond at 5.85%. I've also a fair bit in Nationwide's regular saver, currently paying 3%. So overall at the moment I'm earning a very reasonably rate on my savings.

At the same time, I have two properties with a combined mortgage of about £100,000. I've seen my standard variable rate cut from 6.25% to 2.5%, so I'm better off by over £300 a month since October 08.

I'm not an expert at this money lark, but the way I see it I'm doing not too badly at the moment in terms of my debt/savings portfolio. The interest rates coming down are fine for me, as I have locked interest rates on the savings for a good while.

Anyway, I'm rambling. My point is this. Before quantitative easing, I was under the impression that lack of inflationary pressures meant that in real terms we might actually reach a deflationary period. In other words, your money goes further because goods are cheaper. This in effect means it's not such a worry if you are making very little on your savings, because the net buying power of your money is still going up. Of course, the quantitative easing might change that. Again I'm no expert, but if we risk devalueing the pound against other currencies, then the cost of imported goods rises, which can be pro-inflationary. I appreciate the pound is already losing its footing, so I'm not really too sure where all this will take us. Anyway, as I said, just my tuppence worth.

Great forum, by the way.:beer:

PS My 50p each-way bet is that the chancellor will raise the ISA allowance to something nearer £10,000 as a means to try and help savers with a reasonable pot of cash.

Oblivion

davidmckay wrote: »

PS My 50p each-way bet is that the chancellor will raise the ISA allowance to something nearer £10,000 as a means to try and help savers with a reasonable pot of cash.

Which would be a meaningless gesture with interest rates so low.

Mind you, I'd be happy to see him do it, because sooner or later these numpties are going to realise that interest need to rise to achieve any sort of recovery.

Dave.