two interest rates? one for savers and one for borrowers?

StevieJ

Good ole Generali :T

SamIAm_3-2

Really2 wrote: »

Thank god, I can stop being the "brains" on the forum now.

It is hard work pretending to know what I am on about.:D

You do yourself and injustice...there are still people, you included, who do offer informed opinions and advice. Well, what I consider to be anyway and as I am someone who knows next to nothing about the economy take that as you will...

dealsearcher

The amount of money available for banks for lending is dependent on savers depositing money. These very low interest rates will mean that more and more savers will be withdrawing their money from saving accounts. Doesn't this defeat the whole object of the exercise?

Really2

SamIAm wrote: »

You do yourself and injustice...there are still people, you included, who do offer informed opinions and advice. Well, what I consider to be anyway and as I am someone who knows next to nothing about the economy take that as you will...

A little knowledge is dangerous.;)

Rod Hull wished he had never read "how to fix your own TV aerial":D

In all serious you will be surprised on how much you actually do know.
You only have to be an expert on one kind of finance and that is your own, and I am sure you most probably are. All this other stuff is fairly irrelevant and beyond your's or my control.;)

Generali

There is no morality in money IMO. It just is what it is, that being a medium of exchange and a store of wealth.

You can use cash in ways you consider to be moral (helping the poor or the sick or the needy for example) or amorally (spending it on beer or a nice house for your family to live in).

Either way you have property (cash) and use it as you see fit.

Cannon_Fodder

Thrugelmir wrote: »

Both Northern Rock and Coventry BS are offering fixed term deposit rates for savers over 3% Gross. So its untrue that savers are being hard hit.

More likely that savers still expect rates as offered by IceSave etc which were always unsustainable.

The BEST rate being the same as RPI, is exactly 0% use to man nor beast.

Ok, its better than an actual 0%, and may improve if RPI keeps dropping and they don't drop the savings rates by another 0.5% to follow the BoE.

Those who got Icesave etc, are internet literate and "mobile" with their savings, imo. They can find the next best deal.

The people who are getting hit, are those pensioners and others who are less financially "mobile", don't even have a PC often, who stuck their savings somewhere consistent and solid at say 4%, and now are getting 1% or less.

To lose 75% of your discretionary income, as they often live off interest to top up meagre pensions, is a disgrace in this era, in the modern world.


Part of Govt deals on bail-outs, recapitalisation, mergers that have been waived through competition laws etc etc, should be included clauses to enforce minimum savings rate of say 2%.

And all those 0.01% "savings" accounts out there should be banned under trade descriptions laws!!

Really2

Cannon_Fodder wrote: »

And all those 0.01% "savings" accounts out there should be banned under trade descriptions laws!!

No they are correct, if they were called "earnings" that would be a different matter.;)

SamIAm_3-2

Really2 wrote: »

A little knowledge is dangerous.;)

Rod Hull wished he had never read "how to fix your own TV aerial":D

Yes, I bet he wished he hadn't . And I agree. I try (but don't always succeed) to not form opinions or take decisions without a full understanding of the subject matter. Where this is possible, of course.

Really2 wrote: »

In all serious you will be surprised on how much you actually do know.
You only have to be an expert on one kind of finance and that is your own, and I am sure you most probably are. All this other stuff is fairly irrelevant and beyond your's or my control.;)

I currently have my finances under control. This could change very quickly, however.

Historically I have not been interested in the economy and one of the main reasons I joined this forum and board was to get a better understanding of what is going on. To this end it is slowly helping. I made what I feel, with hindsight, was a bad decision in 2007 (no prizes for guessing what it might be) and I wonder if I would have made the same decision with a better understanding of what was happenning at the time.

maveli

In India Senior citizens (over 60) get a higher rate compared to others. So all pensioners with savings get a good deal

lukekelly_2

And that is paid for by reducing the interest paid to everyone else, meaning that pensioners have smaller savings on which to earn interest! Maybe not such a good deal...