SOS Save Our Savers

vaporate

bendix wrote: »

Well surprise surprise.

So you want to see interest rates raised so that you will be better off, but don't give a damn about the impact of those higher interest rates on companies, businesses and people borrowing on mortgages etc?

In the meantime, you're completely oblivious to the simple economic reality which will mean that higher interest rates equal higher costs which equals higher prices, higher inflation and - of course - lower real interest rates.

Nice attitude, and totally totally misguided.

CRAP!

what about first time buyers unable to get on the property market. Houses costing £40,000 now worth a bollox price of £200,000 for a crap terraced house.

Banks asking for crazy deposit amounts 40k, 20k or wotever. Who on earth has that on them? Not counting mummy and daddy support here.

Cry me a river.

Everyone is out for themselves because humans sre born selfish to be blunt with you.

I support the OP 100%

vaporate

tradetime wrote: »

A campaign for savers calling for higher rates, in a nation full of debtors? That'll catch traction You couldn't make this stuff up.

debtors tough luck. Pay the piper. reap what you sow and all that.

RayWolfe

vaporate wrote: »

debtors tough luck. Pay the piper. reap what you sow and all that.

Up late with a bottle or three?

meggsy

If you support SOS you can now sign a petition launched on 3rd February

http://www.saveoursavers.co.uk/4/section.aspx/Petition_Launch

apt

How can you support such nonsense as: 'The frenzy of spending and borrowing that was a major factor in the collapse of UK banking has hit prudent savers hardest and there is an urgent need to create policies that support saving in the UK.'? Insufficient saving and personal debt is a long-term issue for Britain. It had nothing to do with the credit crunch and banking crisis. And as others have pointed out, savers could have got a good real rate of return on their savings in 2009.

C_Mababejive

MarkyMarkD wrote: »

But, C_Mababejive, your post illustrates all that is wrong with SOS and its supporters. Sorry!

Nationwide, for example, is paying around 4% to get savings money in the form of fixed rate bonds of equivalent length as the loans you are talking about.

Lending it out at 7.6% is scarcely a rip-off! Out of that 3.6% margin, Nationwide has to pay its operating costs - which are around 1% - cover bad debts - which are quite high on personal loans - and make some profit.

If you think a margin of 3.6% on that is too high, you really don't live in the real world.

As for SOS's (and your) comments about "real terms returns" - inflation is irrelevant to the amount financial institutions can pay on savings accounts. It is interest margin that pays for costs. Inflation actually just increases those costs more quickly.

Institutions are already competing for savings. Why do you think that best buy savings rates are absolutely miles about Bank of England base rate? It's entirely down to competition for funds.

So its a perception problem then...? Why do I and many others feel or perceive that we are being ripped off?

You mention Nationwides 7.6% absolute best buy personal loan for existing NW customers only but the thing is,the loans are fixed rate but the returns for savers are often variable.

The banks know there is a problem. Thats why they are busting a gut to lock people into longer term deals through the use of smoke and mirrors marketing tactics.

It will soon be time to con people into signing up for wortheless cash isas as well and no doubt they will be eyeing eachother up to see who will be first to launch theirs.

Why even our very own Martin Lewis,(ministry for stating he obvious) says that to break even,savers would have to obtain a rate of around 2.5% for basic rate taxpayers to save the value of their savings from erosion and he then goes on to helpfully list the ripoff accounts,a list which undoubtedly lengthens by the day.

http://www.thisismoney.co.uk/savings-and-banking/article.html?in_article_id=498169&in_page_id=7

No no...the truth is out. Profligacy rules. To anyone out there who is denying themselves lifes little luxuries because they worry about a mythical rainy day i say spend spend spend (and hide some money from the system) for the state or other institutions will come to your aid.

Also ,sign up for the biggest mortgage you can lay your hands on with the smallest deposit.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013261

vaporate

RayWolfe wrote: »

Up late with a bottle or three?

Not lately lol

Gorgeous_George

MarkyMarkD wrote: »

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.

Potentially libellous claptrap is not the smartest way to put your points across - IMHO.

I lend (a modest sum) at Zopa and I understand the risks involved rather well if I say so myself. I also understand the rewards - such as a rate of return greater than that of a savings account while offering borrowers a competitive loan, the satisfaction of taking some business away from the banks and the friendliness of (most) other lenders.

Check out Zopa's Awards page (link).It may not be for everyone but to dismiss it as a dodgy concept is unfair. I guess eBay is a dodgy concept too?

GG

gozomark

Gorgeous_George wrote: »

I also understand the rewards - such as a rate of return greater than that of a savings account

you missed out the word potential before "rate of return" - given the risk, I should hope you do, on average, get a higher return

Gorgeous_George

Agreed.

However, once understood, a reasonably sensible lender can mitigate potential losses quite well.

GG