Interest rate will rise!

lisyloo

Well if that's what they beliebe they should invbest in NSI index linked certs.
I have soem, but I'm hedging my bets.

plane_boy2000

Double didgit interest rates would destroy the housing market and create massive bad debt in the banking sector.

IMO rate will remain low for some time - maybe up to 1 - 1.5% by next year. A lot of families are only surviving due to reduced mortgage payments, so no Govt will want to jepordise that

Aegis

Craig12 wrote: »

The OP has got his words wrong about the interest rate. "Paltry" he called it. How about "disgusting", "criminal" or "immoral".

Or "none of the above". It's low for a variety of reasons, not least of which is the fact that without a severe loosening of monetary policy we would probably still be in one of the worst recessions the country has ever seen. All in all, it is not simply a random attack on savers, it's a way to try to stimulate the economy into action again, and so far it seems to have done well at doing so. The general consensus is that it will take some time before the country can stand a significant tightening of monetary policy, so probably best to plan for low interest rates for a while.

Aegis

Craig12 wrote: »

So will I and all the excellent savers that lost interest get any form of compensation when things "get back to normal"?

Why should you be compensated? You've benefited from the economy being looked after too.

In short, no, you won't. Just like the rest of us with savings.

Aegis

Craig12 wrote: »

I have not benefitted in any way. I don't know where your getting it that I have. Come back to reality.

I'm sorry, reality isn't a place where you get compensated because the economic situation warranted a reduced interest rate for a while. You could have locked in savings for a few years and benefited from the higher rates available a couple of years ago, you could have opted for regular savers at up to 10% even up to about 15-18 months ago. You could have invested during the downturn and made a small fortune.

In short, there have been plenty of opportunities to make money, some involving risk, others simply requiring you to tie up money for a while. The fact is that if you opt for variable rate savings, you can't really complain when interest rates drop due to macroeconomic conditions that badly needed to be addressed. Decisions like that simply cannot be made to benefit just the savers out there, in much the same way as borrowers can't complain too much if they're on variable rate loans and interest rates rise to kerb inflation.

Oh, and if you honestly think that you haven't benefited from being out of recession a lot faster than you would otherwise have been, I suggest you take a look at historic cases of recessions in the UK. They're not nice at all for pretty much everyone.

Hungerdunger

Craig12 wrote: »

I did think about a Fixed Rate Saver, but with the hung parliament crisis and other problems in this ever increasing uncertain world, I decided that locking money away is too risky.

In that case don't complain about poor variable rates. You made your choice and have to live with the consequences.

[STRIKE]By the way apologies to everyone for clicking the "Thanks" button on the previous post - it was a complete accident.[/STRIKE]

jamesd

Craig12 wrote: »

So will I and all the excellent savers that lost interest get any form of compensation when things "get back to normal"?

The last year has been a wonderful time for investments. It seems that you chose the wrong place for your money. If you only had a couple of thousand Pounds that's fair enough. If you had much more you probably had other options, if you were willing to take some risks.

How soon do you need the money? Can you risk putting some of it away for five years, but with immediate access in an emergency, but perhaps at lower value? There are bond and non-bond funds that can be held tax paid in a S&S ISA and are paying over 6%. With the certainty that there will be capital value variation, both up and down.

Craig12 wrote: »

I have not benefitted in any way. I don't know where your getting it that I have. Come back to reality.

You probably gained greatly from avoiding a major recession or depression. The UK recession formally ended last week after he second consecutive quarter of growth. Weak growth but that's way better than the doom-ridden scenario that we were considering back in October 2008.

lisyloo

I'm afraid that I don't have a choice. I'm virtually a financial prisoner.

Hi Criag,

Why don't you have choices?
If you had invested in stocks & shares or gold you would be doing very well.

Why do you need instant access to ALL your money.

I am struggling to believe you don't have ANY choices, if you don't then could it be down to poor financial planning?
If it is poor planning on your part then why would you expect to be compensated.

I'm willing to be corrected on your situation, but I believe we all have choices and we all make our own luck.

Jonbvn

Craig12 wrote: »

I did think about a Fixed Rate Saver, but with the hung parliament crisis and other problems in this ever increasing uncertain world, I decided that locking money away is too risky.

You pays your money.......

Pobby

I know I nearly panicked when the market crashed. I wonder how many with s and s investments rushed to the door. Some on here were posting the the market would drop a lot further. So glad, for once, I didn`t let panic get the better of me.