What are we supposed to do with our savings,Mr Brown ?

Daz2009

If you're like me you've invested in a cash-isa every year up to the limit and so have a handy amount saved.
So,as of april 6 you'll be looking to transfer that as your rate of return is about to take it's annual hit.
But with inflation running at 3.5% and the best transfer in rates around 2.7% what's the point in saving ?
You may as well go on a spending spree

ctdctd

Cash in your ISA
Spend the proceeds on Baked Beans
Wait for inflation to increase their value
Sell Baked Beans when cash required
Simples!

Daz2009

doesn't the value of baked beans change with the wind ?

John_3:16

I think A&L give 3.5% fixed for 2 years?

Daz2009

Won't all rates be reveiwed after april 5th for the new tax year ?

I'm not keen to be locked in for more than 12 months,rates are going to have to go up at some point

noh

But with inflation running at 3.5% and the best transfer in rates around 2.7% what's the point in saving ?
You may as well go on a spending spree

That is the aim of the policy.
Stimulate the economy by encouraging spending.

dunstonh

But with inflation running at 3.5% and the best transfer in rates around 2.7% what's the point in saving ?

So, in other words, savings are doing what they have done historically. Just about keep in touch with inflation with some periods just above and some periods just below.

Nothing different here.

Primrose

It's probably possible to get a better rate of return if you transfer part of your sum to an equities ISA, maybe in a Corporate Bond or good equity income fund/s, reinvesting the income. But of course, that is a higher risk and once you've made that leap you can't jump back into a cash ISA.

jamesd

If you're after long term money you should be using the S&S ISA, not the cash ISA. There's no shortage of corporate bond funds paying 6-7% and income funds are paying 4-6% with decent capital growth prospects as well.

sheslookinhot

Daz2009 wrote: »

Won't all rates be reveiwed after april 5th for the new tax year ?

I'm not keen to be locked in for more than 12 months,rates are going to have to go up at some point

I think you have answered your own question

MiserlyMartin

dunstonh wrote: »

So, in other words, savings are doing what they have done historically. Just about keep in touch with inflation with some periods just above and some periods just below.

Nothing different here.

Just below? Usually savings were rarely above the base rate. Now its way above. But we have inflation running at 7 times the base rate, thats surely abnormal even historically?!