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Savings Accounts Obsolete-- Now "Losing Accounts"
HAMISH_MCTAVISH
Posts: 28,592 Forumite
http://uk.finance.yahoo.com/news/savings-accounts-will-become-obsolete-tele-b990b6600b22.html?x=0Savings accounts will become totally obsolete if inflation rises next week, experts have warned.
Latest figures suggested that not a single saver in Briton would make a real return on their cash if the cost of living continues to rise.
Historically low interest rates and the governments preferred measure of inflation, the Consumer Prices Index, at 3.2 per cent means savers are already struggling to get an income.
There are currently no accounts available to higher rate taxpayers that provide a real rate of return after tax and inflation, and just a handful available to basic rate taxpayers. But even these could be nudged off the savings landscape, financial experts warned.
They suggested that if CPI (NYSE: CPY - news) rises to above 3.8 per cent, there will be no point any taxpayer using a savings account to produce an income.
In this situation, savers would actually end up losing money and could end up being more than £300 out of pocket in a year on a £10,000 investment.
Oh dear......
It rather seems all the hoarders expecting returns for zero risk are going to be very disappointed in the future.
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
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Comments
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HAMISH_MCTAVISH wrote: »http://uk.finance.yahoo.com/news/savings-accounts-will-become-obsolete-tele-b990b6600b22.html?x=0
Oh dear......
It rather seems all the hoarders expecting returns for zero risk are going to be very disappointed in the future.
Not if they are tucked up in NS&I tax free RPI adjusted savings certificates.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Savers = Hoarders.
Could only come from a debt junkie.0 -
Without savers, and with the BoE withdrawing funding, where will the banks get their money from?
It's a crash. 100% guaranteed.0 -
Without an incentive to save a whole generation will never aquire the 'bug'. Crazy world when it actually makes more sense to blow the lot than save it.0
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neverdespairguy wrote: »Without savers, and with the BoE withdrawing funding, where will the banks get their money from?
It's a crash. 100% guaranteed.
Screwing people with over the odds mortgage rates??Official MR B fan club,dont go............................0 -
It really comes to something when people who have been "putting something away for a rainy day" get screwed over for doing so.
All this talk about working till you're 70 because you can't afford to retire and whe you do try to do something it gets eaten away by inflation anyway.
inflation is theft. pure and simple.
what a bunch of cnts"The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
Why do savers feel entitled to above inflation returns completely free of risk?
If you want higher returns, accept the risks that go with it.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
It's a funny old world.
Mortgage at 1.24%, savings at 2.5% (except NSandI trackers
) and Zopa returning 8% and yet savers are losing money. Not this one.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Do not wait.
Go and buy a house now.
Any house.
Even in skegness.
It will go up in value and you'll be rich beyond your wildest dreams.
Ain't it so hamish?0
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