SOS Save Our Savers

Joe_Bloggs

Why deposit money with banks to earn a pittance in savings interest when credit worthy borrowers pay very high rates to borrow money. If those that need money can be better connected to those with a need for interest, then surely it is better for the economy.

J_B.

gozomark

Unless you are a bank (who does this for a living, so knows the best way to judge, including sufficient diversification of a loan book), how do you judge who is a credit worthy borrower ?

alanwsg

Joe_Bloggs wrote: »

Why deposit money with banks to earn a pittance in savings interest when credit worthy borrowers pay very high rates to borrow money. If those that need money can be better connected to those with a need for interest, then surely it is better for the economy.
J_B.

Maybe you should try this ....

http://uk.zopa.com/ZopaWeb/

Joe_Bloggs

@gozomark
Commercial companies, banks, even countries who require money are credit scored by credit reference agencies/bureaux. See the wikipedia link here.
@alanwsg
I am aware of Zopa and members of MSE with such interests occasionally comment on their dealings/rate of return etc.
J_B.

MarkyMarkD

Joe_Bloggs wrote: »

Why deposit money with banks to earn a pittance in savings interest when credit worthy borrowers pay very high rates to borrow money. If those that need money can be better connected to those with a need for interest, then surely it is better for the economy.

J_B.

Why indeed, when you can deposit money with banks or building societies to earn a good rate of interest?

The margin between 3 or 5 year bond rates, and best buy 3 or 5 year fixed rate personal loans, is only around 3%. That is nothing considering the cost of bad debts and administration.

The idea that direct lending from lenders to borrowers is going to be more efficient is a bit silly to be honest. Zopa is a dodgy concept which only really works based on the lenders having an unrealistic view of the risks involved, IMHO.

If everyone saving was prepared to risk losing money, they'd all probably use Zopa instead of saving with the banks. But then again, most of them prefer their FSCS £50k guarantee.

It's a consumer choice - risk or reward. But SOS wants reward without any risk ... which can only be delivered if borrowers pay even more than they do at present.

Joe_Bloggs

I welcome the insights from MarkyMarkD. I am sure that banks that offer 0.1% cash ISAs have the consumers best interests in mind. I guess you have to shop around/ inquire /research to find something that is worth your money.

Some may say that banks can do no wrong and offer the best deals on the planet. How else can a consumer make any money unless it comes from a bank ?

J_B.

tradetime

Some may say that banks can do no wrong and offer the best deals on the planet. How else can a consumer make any money unless it comes from a bank ?

Invest your money. If you don't like the bank payment, then why give it to them and cry?

vaporate

Joe_Bloggs wrote: »

I welcome the insights from MarkyMarkD. I am sure that banks that offer 0.1% cash ISAs have the consumers best interests in mind. I guess you have to shop around/ inquire /research to find something that is worth your money.

Some may say that banks can do no wrong and offer the best deals on the planet. How else can a consumer make any money unless it comes from a bank ?

J_B.

Well banks certainly do not hold all the cards.

Firstly, the government saved their backside

Secondly, either banks pay some interest or savers are better off doing a run on their money, buying gold and insuring it for theft ect.

Don't bite the hand that feeds you basically, in this case, savers lolly (cash).

Play fair or suffer.

vaporate

bendix wrote: »

You see. You just don't get it do you?

You continue to persist with this myth that you are getting a poor return on your savings.

WRONG. You are getting the best return on your savings in decades. Literally.

Which part of that are you finding hard to understand?

LOL bolloxs

vaporate

Robert_Kent wrote: »

I just see the new savers campaign started yesterday. May be of interest to posters here. I am unable to post a link here but a simple search of the campaign name will identify.

I for one have registered as are many of my friends. You may wish to do so.

It would be great if Martin Lewis and other members of the media were also to support - the underlying problem of artificially low interest rates is perhaps of the same level of importance as the unfair bank charges issue that was well supported.

I am with you on this one.