SOS Save Our Savers

Old_Slaphead

gozomark wrote: »

CPI, which excludes mortgage payments has not been running at 4-5%, never mind higher.

This year it's been averaging 1.7% and for December it was 2.9%.

Allegedly over 90% of savings accounts have been paying less than 2% before tax (ie 1.6% net).

In the words of bendix "you're getting the best return on your savings in decades. Literally". In the interest of accuracy (which hasn't always been a feature of some of the utterances on this site) I don't think so.

StevieJ

Old_Slaphead wrote: »

I'm not a pensioner (therefore don't have a vested interest in this question) but where do you get 7.62% from. The increase 2009/10 was from £95.25 to £97.65 that's errrr 2.5%

The pension increase for April 2009 was 5% and for April 2010 will be 2.5 %

Old_Slaphead

StevieJ wrote: »

The pension increase for April 2009 was 5% and for April 2010 will be 2.5 %

CPI was 4.7% in Aug 2008 and 1.6% in Aug 2009.

Naughty chancellor has kept it very quiet that he won't be increasing SERPs, Grad Contribs or S2P pay'ts in 2010 so the 2.5% wasn't all it seems.

Oh well, as you say, pensioners have done well getting some 1.3% over the odds over the last 2 years. Unfortunately such largess won't be available to the rest o us in future.

agsnu

bendix wrote: »

When will the whiners and complainers realise that REAL interest rates today are higher than at any point in the last thirty years?

Uh, what? Highest instant access account is about 3.3%. After basic rate that's 2.64%. Latest inflation figures are CPI at 2.9%. Pretty crummy if you ask me.

StevieJ

Old_Slaphead wrote: »

CPI was 4.7% in Aug 2008 and 1.6% in Aug 2009.

Naughty chancellor has kept it very quiet that he won't be increasing SERPs, Grad Contribs or S2P pay'ts in 2010 so the 2.5% wasn't all it seems.

Oh well, as you say, pensioners have done well getting some 1.3% over the odds over the last 2 years. Unfortunately such largess won't be available to the rest o us in future.

The pension is based on RPI in Sept which was -1.3% so I think 2.5% makes it 3.8% above RPI, I suppose Brownie didn't fancy the pensioners receiving 0% increase in April just before the election where RPI could easily be 4%.

Ron2256

StevieJ wrote: »

The pension is based on RPI in Sept which was -1.3% so I think 2.5% makes it 3.8% above RPI, I suppose Brownie didn't fancy the pensioners receiving 0% increase in April just before the election where RPI could easily be 4%.

Then again RPI means sweet fa to pensioners.

StevieJ

Ron2256 wrote: »

Then again RPI means sweet fa to pensioners.

Not many members of the workforce matched those pay increases over the past two years.

MarkyMarkD

What on earth is the relevance of a knee-jerk reaction to one, exceptionally high, month's RPI figure?

Lisyloo - you are wise enough to know better.

The average inflation rate over the past year, compared to the average fixed rate bond rate, shows that savings returns, after inflation, are a lot higher than they have been for years. That is what people have been trying to say.

The government isn't solely focussed on "borrowers" with the implication of personal borrowers. It is bothered about businesses and is trying to get the economy out of recession. Personal borrowers and savers are, to a large extent, a red herring in this regard, but there is to some extent a boost to the economy because - although there is something of a nil sum game, with savers losing and borrowers winning, it's not as simple as that, primarily because the banks and building societies have had their margins hammered by the low rates prevailing, meaning that borrowers are gaining more than savers are losing.

So, overall, low interest rates benefit the economy, both via business and via the net impact on personal borrowers and savers.

Statements by the OP like

Robert_Kent wrote: »

savers are pretty well left with little or no way of expressing their dissatisfaction other than by attempting to move to a better paying account which in an effectively uncompetitive market place leaves you with little alternative.

are totally ridiculous. The savings market is enormously competitive, and that is why the average fixed rate bond rate is over 2% higher than BBR at 2.5% or 2.0% after tax.

Average inflation (CPI) in the 6 months to November 2009 was 1.6%. So that's a real return of around 0.4%.

When BBR was 6% - the average fixed rate bond rate was 6%.

6% net of tax was 4.8%. Inflation (CPI) was 4.5%. So that's a real return of about 0.3%.

Real rates haven't changed at all!

So, the whole SoS campaign boils down to not understanding the difference between real and nominal rates, and too much reading the Daily Mail and accepting their hyperbole based on one unusual month's inflation figure.

StevieJ

MarkyMarkD wrote: »

So, the whole SoS campaign boils down to not understanding the difference between real and nominal rates, and too much reading the Daily Mail and accepting their hyperbole based on one unusual month's inflation figure.

If I was a gambling man I would bet they will be even more unusual next month

Biggles

Ron2256 wrote: »

Then again RPI means sweet fa to pensioners.

It means an enormous amout - it determines the next year's pension and benefits.