Will high interest savings rates begin to rise again?

GCH888

ed123 wrote: »

.....When base rate was at 5% the best rate then was KE fixed at 7.67% ie 2.67% above base rate......

7.67% ... so it wasn't a dream ... it really did happen.

My £50K was earning around £250 a month.

Ifts

GCH888 wrote: »

7.67% ... so it wasn't a dream ... it really did happen.

I still got the ex KE now ING 7.67% till 26-Sep-2011, just a shame I cant add to it!

bendix

GCH888 wrote: »

7.67% ... so it wasn't a dream ... it really did happen.

My £50K was earning around £250 a month.

And what was inflation at the time?
It's no good earning high interest if the REAL return is neglible.

I've said it a milllion times, so once more won't hurt. REAL interest rates are higher today than they have been for decades. It's a fact. It can't be challenged.

nrsql

bendix wrote: »

And what was inflation at the time?
It's no good earning high interest if the REAL return is neglible.

I've said it a milllion times, so once more won't hurt. REAL interest rates are higher today than they have been for decades. It's a fact. It can't be challenged.

Not as simple as comparing interest rate with inflation.
e.g. low inflation means that a mortgage decreases by less in real terms (increases for deflation).

Anyway inflation (RPI) is running at about 2% this year - and that's over 9 months not a full year. It will get another jolt when VAT increases at the begining of next year - so it's quite difficult to get a positive interest rate in real terms at the moment.

>> It's a fact. It can't be challenged
Umm - guess it can.

Lokolo

bendix wrote: »

And what was inflation at the time?
It's no good earning high interest if the REAL return is neglible.

I've said it a milllion times, so once more won't hurt. REAL interest rates are higher today than they have been for decades. It's a fact. It can't be challenged.

Yeh I see your point but just looking at inflation is pointless. I used BBC calculator to work out my inflation and it was something like 5% about 9 months ago! This was mainly as I don't own property, have a lot of my money going into food (which rose like anything whihc was gay).

DAM YOU INFLATION. DAMN YOU!

fullstop

Australia put up their interest rate yesterday by 0.25% to leave a new rate of 3.25%. They were not so badly hit by the recession as The UK .

nrsql

I usually think of sterling to oz at around 2.5. I exchanged some money (not much because I'm not brave) at about 2.2 - my ozzy friends thought I was stupid. It's now under 1.8! Crazy.

ChuckCash

Lokolo wrote: »

Yeh I see your point but just looking at inflation is pointless. I used BBC calculator to work out my inflation and it was something like 5% about 9 months ago! This was mainly as I don't own property, have a lot of my money going into food (which rose like anything whihc was gay).

DAM YOU INFLATION. DAMN YOU!

I agree. While bank account interest rates allow a person to calculate exactly how much money their savings will earn, official inflation rates, however they are measured, are not so easily applied to an individual's circumstances. My personal inflation rates are also way above any of those official figures, hmmmm.

ScarletBea

I don't know, so to protect myself I fixed some money at 1 year, some at 2 years and some at 3 years. I won't go further than that.