MSE News: No 'savings' accounts exist, they're all 'losings'

This is the discussion thread for the following MSE News Story:

"The only UK savings account that beats the present 5% RPI inflation rate was withdrawn last week, so what next for savers? ..."
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Comments

  • Lokolo_2
    Lokolo_2 Posts: 1,005 Forumite
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    Yes we all know that rates are below inflation, but saving at below inflation is better than not saving at all isn't it? :j
  • edinburgher
    edinburgher Posts: 13,461 Forumite
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    aaronmanz wrote: »
    Yes we all know that rates are below inflation, but saving at below inflation is better than not saving at all isn't it? :j

    Absolutely - but it's only a matter of time before some cretin comes along and says 'I shouldn't bother my backside saving and will just claim benefits like everyone else' ;)

    Granted, it's rubbish to see wealth shrinking, but I think we need a little perspective on the negative effects of inflation on cash savings.

    Most people who are saving towards a short-medium term goal (holiday, house deposit etc.) will still be able to reach said goals regardless of inflation, because they're saving £££ of pounds a month and even with this decreasing by a percent or two a year, their capital will continue to grow.

    Aside from these goals, I can't understand the appeal of having huge stashes of cash - would far rather have my money invested somewhere where I stand a chance of making some real money instead of just piling up slowly. Then again, I'm fairly risk-tolerant.

    Those who will be hurt by this will be older savers with most of their money in cash. They have my genuine sympathies because there's not much they'll be able to do...
  • flyingscotno1
    flyingscotno1 Posts: 1,679 Forumite
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    Equally, not everyone suffers inflation at the same rate- the official rate is
    a best fit but we all have a personal inflation rates and if you use more or less of a product. The are looking at average, but someone who say doesn't drive hasn't been as affected as Mr Average 10K miles who has seen pence per litre go up by 20p in the last year.

    Indeed there is higher inflation for some and lower for others.
  • bendix
    bendix Posts: 5,499 Forumite
    Is it just me, or does anyone else think that the MSE management is starting to get very cavalier and irresponsible in the way it promotes these type of stories?

    What possible motivation could there be to issue this, except PR? Can they not understand how some of our more gullible posters might look at it and decide to stop saving completely?

    Unbelievable. Another MSE lowpoint, following the disingenuous article a couple of months ago about NS&I rates of return.
  • Sceptic001
    Sceptic001 Posts: 1,111 Forumite
    And in what respect can it be defined as "news"? There is no new information, just a rehashing of stories that appeared last week after the sudden demise of index-linked savings certificates.
  • bendix
    bendix Posts: 5,499 Forumite
    Meanwhile, the most important personal finance story of the day - the Government's plan to abolish Labour's ridiculous plans around abolishing high rate tax relief on pension contributions and replace them with a £40,000 limit on tax free contributions - has been completely ignored.
  • alanq
    alanq Posts: 4,216 Forumite
    Combo Breaker First Post
    It remains to be seen whether any current savings account will beat inflation. It may turn out that some of the fixed term bonds do beat inflation over their life. There is no point in comparing inflation over the past year with interest rates for the coming years.
  • ScarletBea
    ScarletBea Posts: 2,913 Forumite
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    I don't notice any visible inflation for me though...
    Being brave is going after your dreams head on
  • bendix
    bendix Posts: 5,499 Forumite
    ScarletBea wrote: »
    I don't notice any visible inflation for me though...


    Neither do I, to be honest. If anything, most things I buy have got got cheaper or are at roughly the same level as they were last year.
  • Reaper
    Reaper Posts: 7,280 Forumite
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    bendix wrote: »
    Meanwhile, the most important personal finance story of the day - the Government's plan to abolish Labour's ridiculous plans around abolishing high rate tax relief on pension contributions and replace them with a £40,000 limit on tax free contributions - has been completely ignored.
    That could be because it has not been decided what to replace it with yet: http://www.bbc.co.uk/news/business-10775689
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