Savers should be rewarded.

madeupname1

DervProf wrote: »

There have been a few people on this forum that have shown some disrespect for those of us who have savings. They have very little sympathy for those of us who had the discipline and sense to not spend every penny we earn, and now find that the returns on our savings isn't keeping up with inflation. Unless we spend a large proportion of our income on servicing mortgage debt, we are to be dismissed as "parasites".

Why do you care? I am a landlord. We get the vilest abuse on this forum. I have concluded that it is utterly pointless thinking about what nameless faceless people on the net think about my financial decisions.

jjsimcox

madeupname1 wrote: »

I am a landlord. We get the vilest abuse on this forum. .

you ****. i hope you ******* ***. now why don't you go and **** ***.

B_Blank

DervProf wrote: »

There have been a few people on this forum that have shown some disrespect for those of us who have savings. They have very little sympathy for those of us who had the discipline and sense to not spend every penny we earn, and now find that the returns on our savings isn't keeping up with inflation. Unless we spend a large proportion of our income on servicing mortgage debt, we are to be dismissed as "parasites".

Well here we are today, post credit crunch, and our economy isn't looking exactly rosey. What our retailers need are some customers, and that's where savers suddenly become more valued. Lending is restricted, so slapping the holiday on the plastic isn't so high on the agenda.

Now is the time for the saver to take revenge. It's time to wave our wad in the face of the retailer and say "if you want some of this, you're gonna have to work for it". The BoE think they can smoke us out by allowing inflation to exceed returns on savings. Well, they have another thing coming, because as CPI had gone up, my spending has gone down. I aim to make my prudence pay, and I'm eyeing up a nice new TV. I can't believe I can get a 40" flatscreen for less than £400, but that's what I intend to do. Inflation ? Pah !!! VAT increase ? I can't say I've noticed - the TV I'm looking to buy has tumbled in price. Food, fuel etc has gone up, but I simply change my buying habits to suit. As far as earnings are concerned, I simply increase my charges to cover any increase in my outgoings (which are fairly low anyway). If I suffer any loss of income due to higher charges, I don't have to worry because of the savings that I stashed when times were good.

For any younger FTBers who may be reading this, I suggest you be nice to your parents, and stay at "home" for as long as possible. You too can "smoke out" those who seek to take your money.

I am the same!!! I am staying with my parents to save money, and I am deliberately not spending a penny but instead finding better ways to save and invest to protect against inflation and make a return!

Graham_Devon

whatyadoinsucka wrote: »

ok. am i being stupid now, i bought a reasonably priced house for the current market.
my mortgage paperwork clearly states for each £1 borrowed i will repay £1.82 over the mortgage term.

Therefore in the short term i am doubling my money (ignoring the inflation aspect) therefore for the short term we are overpaying to get our LTV to the best possible Rates Offered, so that we can afford on one salary and then come later this year I will be investing in the stock markets (60% into trackers / unit trusts etc & a few FTSE 100s and 40% into Emerging Markets)

I am still living very comfortably got 3 holidays already booked and paid for..
and the car is 2 months from being paid for :0)

You are not doubling your money. And yes you are missing something.

You are simply saving some money on the repayments.

Doubling your money would be turning £1 into £2. Earn £1, turn it into £2.

You are not magically doubling your earnings. You are simply opting to keep more of them by paying off debt quicker.

Ultimately, you have lost money, as you will have paid some interest in the course of the mortgage. That interest has bought you nothing. This is standard practice for those who want to buy houses and need a mortgage to do it, but to start twisting it to the extreme of saying you are actually doubling your cash by paying less interest....well that takes some doing, and I never seen that before!

ILW

Interesting fact is that if a lot of savers all decided to remove their deposits at the same time, the whole banking system would collapse and take the whole economy with it. Does make you think.

michaels

The sad thing for savers is that the first 250 points of rate increases are going to show very little change to instant access rates as they market leading deals will revert to the historical norm of close to base - but the benks will be laughing as they push up all the tracker and svr mortgages, carry on paying 0% on current accounts and watch the margins balloon. And don't expect big increases in long rates ether - these deped on bond yields which are unlikly to increase much - may be by a few hundreed basis points but not enough to give savers what they were looking for...

ILW

My savings are on base plus 2.25%.

James_N

B_Blank wrote: »

I am the same!!! I am staying with my parents to save money, and I am deliberately not spending a penny but instead finding better ways to save and invest to protect against inflation and make a return!

So, judging by your frequent comments elsewhere you are having your parents support you for free while you moan about affordable housing. Great move.

Kohoutek

ILW wrote: »

Interesting fact is that if a lot of savers all decided to remove their deposits at the same time, the whole banking system would collapse and take the whole economy with it. Does make you think.

Where would they remove them to? The banks would just put higher limits on cash withdrawals.

ILW

Kohoutek wrote: »

Where would they remove them to? The banks would just put higher limits on cash withdrawals.

As far as I know there are no limits to cash withdrawals on most savings accounts. It is more the sentiment of a run on the banks that would cause the run. Look at NR a few years ago.