Six Million Britons have no savings at all

PasturesNew

I found out last week, trawling through MSE, that money in an ISA isn't taken into account for Working Tax Credits purposes!! And, as you never know if you might one day be eligible for something like that it's best to tuck it away as you go along as you can't shove it in back-dated.

michaels

I also discovered this by chance on here which makes a real difference to me - however unfortunately it still counts as savings for capital eligibility rules

Which does bring up a serious point - if you are in a profession where you are in and out of jobs then having more than 6k of savings is a mistake.

PasturesNew wrote: »

I found out last week, trawling through MSE, that money in an ISA isn't taken into account for Working Tax Credits purposes!! And, as you never know if you might one day be eligible for something like that it's best to tuck it away as you go along as you can't shove it in back-dated.

C_Mababejive

It is foolish to save. Invest yes,but dont save. If you have spare cash,use it to enjoy life or buy tangible assets.


Anything else is a mugs game.

WillF_2

ILW wrote: »

Interest is only compounded yearly and if the rate is less then inflation your capital will still decrease in value.
Inflation really is a pain to savers, but hey ho, Merv thinks it's OK.

What's your point? I'm well aware of the impact inflation has on the value of money.

My point was that saving money in a current account rather than a higher rate tax-free ISA has a much bigger long-term impact than missing out on the odd £20. The effect of compounding is one of those reasons.

kabayiri

I don't quite get this NS & I person.

If everyone took a packed lunch into work, and cycled into work, then 1000s of sandwich shops would be bust up and down the country, Greggs the bakers would become a distant memory, and falling revenues would support bus company arguments that they have to put up fares for the remaining customers!

I sometimes think these spokesmen and women want it all ways. Encourage saving whilst still maintaining and hence growth.

LilacPixie

I have very little savings at the moment, sometimes i have 2-3k but thats usually because I have a holiday booked or planning on booking one so its spent pretty quickly. Everything spare I have at month end goes into mortgage as an overpayment.

ILW

WillF wrote: »

What's your point? I'm well aware of the impact inflation has on the value of money.

My point was that saving money in a current account rather than a higher rate tax-free ISA has a much bigger long-term impact than missing out on the odd £20. The effect of compounding is one of those reasons.

My point was that even with compounding, if the rate is lower than inflation, eventually the pot will be virtually worthless. As far as I know all savings accounts are compounded.

WillF_2

ILW wrote: »

My point was that even with compounding, if the rate is lower than inflation, eventually the pot will be virtually worthless. As far as I know all savings accounts are compounded.

Pretty sure we all get that, and you're still missing the point. You realise my comment was in response to the comment I quoted and not the OP, right?

vax2002

And a damn sight more than 6 million could not afford to bury themselves if they died tomorrow, thats how you define poverty, when you can not afford to die, never mind live.

SingleSue

I have savings....the grand total of £30.57 (which includes a £5 Morrisons voucher), in a easter egg hunt pail.

Quite chuffed with it to be honest, it is just spare change thrown in at the end of the day...although a real begger to count it as it is mostly 1p's and 2p's!

It has a purpose too, it will get us over the 1st weekend of our holiday for food and fuel.