Where have the savers gone?

Mikeyorks

The return, from cash accounts, is now so poor that I suspect a lot of people have turned to funds. Or are simply leaving cash in slightly inferior accounts as the difference between the mediocre and the best is now so narrow. I think there's an apathy at the 2% / 3% level that wasn't there at 6% / 7%?

I've certainly moved towards funds and put my own / OH's ISA money there this year - and the average 30% return in the last 6 months strongly suggests that was the right direction. But I do have my last good (5.2%) cash account maturing in a couple of days - and that gives me a dilemma as to what to do with it. 3% easy access isn't particularly appealing but nor is around 3.5% fixed for a year. So I suspect it will be split between some less volatile funds than I have currently - and a 3.5% fixed Web for a year.

cottager

Mikeyorks wrote: »

- and a 3.5% fixed Web for a year.

Also what I was hoping to do when my Web Saver Reward finished in a couple of days. Sadly... Halifax has dropped it today to 2.35% gross. The 2-yr term has gone up 0.05% to 4.20% gross.

Mikeyorks

cottager wrote: »

Also what I was hoping to do when my Web Saver Reward finished in a couple of days. Sadly... Halifax has dropped it today to 2.35% gross. The 2-yr term has gone up 0.05% to 4.20% gross.

Yes, thanks - I'd just noticed that elsewhere. Bit of head scratching to come tomorrow. The rumbles over Dubai indebtedness is doing my funds no good at all. They will recover - but I need to maintain a good chunk of cash - however the interest rates in the short term aren't enticing.
Probably resort to the dartboard!

natman

I know the short term saving rates are poor, I will have a chunk of cash maturing in 4 week, I am really considering Premiumn Bonds. I placed a forum topic about this, so wont go into much detail.
Options I am considering with £5,000

Premiumn Bonds for a year, whilst things hopefully get a bit better.

Insert money in my 3.30% instant access saver until better things come along.

Open up new 1 year Bond - at around 3.8% at present

them options are not inspiring............. But with so little around for 12 months Premiumn Bonds are still mulling round my head as an option.

tara747

Aegis wrote: »

Fewer good rates compared to this time last year and a general feeling of pessimism?

Arthurian wrote: »

All the exciting new deals have vanished. That's why there's less to talk about.

Totally agree with these two. That's why I haven't been here much recently. :rolleyes:

Also agree with those complaining about spoon feeding.

MiserlyMartin

Spoon feeding points noted. But there used to be long threads all about the ins and outs of MSE Martins latest good deal savings account and experiences etc of them. But there is little activity on threads like this, if any threads at all.

D1zzy

MiserlyMartin wrote: »

Spoon feeding points noted. But there used to be long threads all about the ins and outs of MSE Martins latest good deal savings account and experiences etc of them. But there is little activity on threads like this, if any threads at all.

' cos its all got very boring - low rates that mean it doesn't much matter where you put yr money. After tax yr talking a few quid difference on a 10s of thousand "investment" {oops savings;)}. You just have to decide how long you want to tie up yr dosh - and that's pretty much guesswork :cool:

antispam246

Pretty much agree with the majority of points.

Less offers, rates are fairly stagnant on the short term scale which is what most of the talk used to be centred on. Every other week there would be a significantly superior offer with better terms, these days unless it's on the long term fixed rate it's pretty much the same or an insignificant difference.

Most people seem to be turning to different avenues. Although it includes some talk dedicated to this forum, especially the like of trading/shares it's also more popular in other boards such as, secondary income from jobs, gambling or cashback from a variety of avenues such as surveys, cashback on purchases, buying and selling on sites such as eBay etc.... These tend to have dedicated forums elsewhere.

and finally, all as mentioned, as well as those with the knowledge no-longer spoon-feeding I get the feeling those that required the information no longer need to address the masses to get the answers, saving in general has become such a widespread topic even if people don't already know, it's not just MSE they can look at, the information is available practically everywhere. Even if it's a more specialised question, people can turn to plenty of other outlets to address their questions, not just here.

Personally, all 3 of those apply to myself. I have queried enough in the past to understand how to get my answers without a new topic every other day. I don't feel there are many offers suited to me and most of my savings, as the market is so stagnant, are fixed into long term investments which mean I don't require to be doing ahything else for awhile, unless I happen to come into a sudden abundance of more money.

and again, finally, I have be concentrating making savings from other sources, such as those pre-mentioned. I do tend to check in here every now and then but, as you said, there's nothing really new or relevant (to me) going on. Except this thread (:

Primrose

This business of reasonably paying fixed rate savings bonds being pulled just before one's current fixed rate bond matures is a real pain for many people, especially older people who need monthly income to supplement their pensions. It doesn't really make sense to borrow money from the banks for a very short period just so that you can grab a rate while it's still available but we've developed a technique of "short term borrowing" from ourselves. We keep a certain sum in an easy access account for contingencies and emergencies. If we have a bond about to mature and worry that a reasonable offer is about to be pulled, we "borrow" from that fund short term to take out a new bond, knowing the money will soon be replaced. Our loan may not cover the whole amount of the new bond we want to take out, and sometimes we have to take out a second bond for the balance which does complicate things, but it does enable us sometimes to get a better interest rate deal before it disappears.

fullstop

Noticed that Australia have just raised their interest rate for the third month in a row, it is now at 3.75%, wonder how much longer we will have to put up with 0.5% ?